Survey Shows People Are Unrealistic Concerning Retirement
A survey by the NHPF, had some telling results concerning retirement. First, a realistic look at retirement:
73% expect to delay retirement
31% have no retirement budget
62% of those who have budgeted stated that SSI (Social Security Income) will contribute to at least half of their monthly income.
65% haven’t budgeted for unforeseen health-related expenses
Those numbers are consistent with reality. Then there are these two statistics that make you want to go - What?
"70% are at least somewhat confident that they will experience the retirement that they seek and 83% believe they will be able to “age in place.” "
How could 73% expect to delay retirement and 70% are at least somewhat confident?
This has been my experience in working with people. The bottom line is that most people don't know the answers to those questions. So, when asked about retirement, the tendency is to go for the answer - "it will all work out or there is no way I will retire." It is from one extreme to another and the answer is based on how you are wired to look at the world.
If asked the question, what does retirement look like - what would your answer be? Well, there are a lot of ways to answer that question. However, there is only one way that makes sense and that is the real answer. Wouldn't you like to answer this way?
"My retirement is on track to where I can retire at age 65 and fund an income of $5,000 a month for 30 years with an expectation of an average of 2% inflation. My projected spending rate is $4,000 a month."
Financial stress concerning retirement is the result of not knowing. Most people don't want to know because they are fearful of the answer. There is no need for that fear because it is all about crafting out a plan that fits where you are and where you are projected to be. It is about knowing your numbers.
Start the process of knowing your numbers and get on a set defined plan. Otherwise, you are leaving your retirement up to a being a guess! For more information on how to do so, email me at email@example.com.