The society of actuaries recently came out with a study from 2009 on a fairly interesting topic regarding retirement planning as a whole. The study covered a variety of topics including asset management, health care planning, and personal risk management along with a variety of other retirement related financial topics that were important to people either in retirement or about to get there. The study consisted of 804 adults ranging from the ages of 40 to 80 (401 retirees and 403 pre-retirees).
Some interesting facts about the financials of the surveyor’s health & finance.
“Current retirees, half of whom retired before age 60, and those not yet retired (referred to in these reports as “pre-retirees”) are analyzed separately. The results are based on a representative sample of Americans and do not provide specific insights concerning high net worth individuals. Only 3 percent of retirees and 5 percent of pre-retirees report having $1 million or more in savings and investments, and 6 percent each of retirees and pre-retirees report having between $500,000 and $1 million. Eleven percent of retirees and 35 percent of pre-retirees indicate they have household incomes of at least $100,000. At the low end of the spectrum, 24 percent of retirees and 22 percent of pre-retirees indicate they have less than $25,000 in savings and investments, while 18 percent of retirees and 6 percent of pre-retirees report income under $25,000.”
As you can see the numbers are all over the spectrum. Some on the high end and others further on the low end.
Some other important retirement planning points from the survey:
a.. Almost all respondents agreed that health care or lack thereof is an important area of concern as they move into their retirement years.
b. A good portion of the survey respondents greatly depends on social security income during their retirement.
c. Housing is still one of the most significant assets in their portfolio of retirement investments.
d. Inflation and cost of living is a concern amongst many with social security benefit receivers.
e. Most have noticed that spending has been reduced greatly over the last few years.
f. Most have limited resources to continue investing in order to improve their financial situation in a positive direction.
Emotions surrounding their retirement seem to be pretty valid and evenly spread out amongst the survey takers. With many things in life there is a certain sense of uncertainty in almost everything we attempt to accomplish. Whether it is financially related or not seeking the help from a professional is always important. In this case a certified retirement specialist should be at the forefront of their commune.