Will your retirement dreams match your reality? The idea of retirement can seem exciting and frightening at the same time.
Will Social Security be enough? Do you have a Pension? Have you considered the potential costs of healthcare? Do you have a plan? Most of us are becoming increasingly more dependent upon our own savings to supplement our financial needs in retirement.
For more than 30 years, the Employee Benefit Research Institute (EBRI) has conducted the Retirement Confidence Survey, which gauges the views and attitudes of working-age and retired Americans regarding retirement and their preparations for retirement.1
Part of the survey takes a deep dive into workers' expectations for sources of income in retirement versus retirees' actual income sources.
A few highlights of the 2021 survey:
Only 33% of workers expect Social Security to be a significant source of retirement income. In reality, 62% of retirees say it's a major source.
Further, more than 50% of workers believe that workplace retirement savings plans will be a significant source of retirement income. But the 2021 survey found that workplace plans are a major source for only 20% of retirees.
Surprised? We're not. These numbers are consistent year after year. Here's another nugget to consider: 26% of workers plan to work for pay in retirement. In reality, only 7% of retirees do.
For most, retirement is the "next chapter" in life. It's critical that your finances support your retirement vision so that there are no surprises when it's your turn.
Let me know if there's a change in your retirement dream. I would welcome the chance to hear what prompted the difference, and we'll be happy to assist with any needed adjustments in your financial strategy.
1. Employee Benefit Research Institute, 2021 Retirement Confidence Survey
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
2021 Retirement Confidence Survey
July 06, 2021