Retirable has surveyed more than 2,000 Americans age 55 and older to determine how individuals are spending their retirement in 2023.
According to the United Nations, the number of people 80 and older globally is expected to triple in less than four decades, from 137 million in 2017 to 425 million by 2050. While this is great news, longer lifespans mean more years in retirement, putting pressure on younger generations who must plan and save accordingly.
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Many Americans Are Not Ready For Retirement
The research shows that in 2023, many Americans are not ready for retirement, with one-third of people close to retirement age confessing they do not yet have enough money to last through retirement and, because of that, they are considering taking a part-time job in what is supposed to be their golden age.
So, what are the top mistakes people make when planning their retirement?
The study reveals that Baby Boomers are uncertain about retiring in the current economy, with Americans close to retirement age only saving $310,530 on average when they think they need about $873,000 to retire comfortably. This means they have achieved only 35% of their retirement savings plan!
While multiple reasons may impact the success of your retirement plan, experts reveal that one of the biggest mistakes people make while planning for retirement is not seeking expert advice.
In fact, according to the study, more than two-thirds (67%) of Americans age 55 or older have not met with an advisor to create a financial plan at all, and only less than one-third (31%) have done so. This is troubling, considering 3 in 5 Americans plan to spend their retirement years maintaining their current lifestyle.
Retiring to a simpler life is the great American dream. But it can be stressful if you don’t have enough money to live comfortably. Consider working with a certified financial planner who can look at your planned lifestyle and ensure you have enough to cover all your retirement plans.
The study also found that Americans prefer not to have financial discussions with their family. Less than half (44%) of respondents say they have discussed retirement planning with their children—and only 15% plan on doing so. The research also showed that women are slightly more likely to trust a financial recommendation from their child(ren) than men (62% v. 55%).
Key Findings: The Changing Picture Of Work And Retirement In 2023
- Over a third of Americans (35%) do not feel they have enough money to last them through retirement.
- Over half of older U.S. adults plan to continue working even after reaching retirement age.
- Most people believe they will retire by the age of 68.
- However, the golden age when Americans plan to retire changes over the years drastically, with Gen X believing they'll retire 15 years earlier (age 65) than Boomers will (age 80).
- On average, men believe they will retire at 70, while women think they will retire at 67.
- Women are more likely to retire before their male counterparts with fewer savings, with men saving over 100K more than women for their retirement years.
- On average, men have $367,125 saved for retirement, while women have $257,593.
- Most Americans anticipate healthcare as their most significant expense during retirement, followed by living costs and housing.
- Most Americans dream of traveling in retirement, but only 8% are planning on doing so.
About Retirable
Retirable is on a mission to empower a confident, worry-free retirement for everyone. By rethinking how to provide everyone with financial guidance for retirement, Retirable can give retirees greater control and peace of mind when they need it most.
