August 21, 2014

Recent retirees living on less; Depend on Social Security

The Squared Away Blog summarizes a study of recent, fairly well-off (median assets = $473,000) retirees conducted by T. Rowe Price.
"Many recent U.S. retirees in a new survey receive less than two-thirds of what they earned during their working years, and they’ve made significant adjustments along the way."
Many report living "on less than the 70 percent to 80 percent of their pre-retirement income that most financial planners and retirement experts estimate they need.  And four out of 10 are living on 60 percent or less."
Social Security is their largest income source.
Besides being more affluent than average, they are likely to encounter more financial stresses, especially related to health care costs, as they age.

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