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.
http://squaredawayblog.bc.edu/squared-away/retirees-live-on-less/
Showing posts with label retirement satisfaction. Show all posts
Showing posts with label retirement satisfaction. Show all posts
January 28, 2014
What Makes a Successful Retirement?
It's NOT just about money! Dr. Michael Finke, Texas Tech University, explains what we know from research to answer this question. "Retirement is an abstract concept until it happens. You develop a
routine of driving to work, interacting with coworkers, addressing
challenges and finishing projects. Then you drive back home again, have
dinner, relax, then wake up and go to work. But what happens when you
quit your routine? How easy is it to establish new habits and take on
new challenges? What do people actually do when they retire? Financial advisors spend a lot of time helping clients become
financially prepared for retirement. But retirement isn’t just about
money. It’s about using the money to get the most out of a unique life
stage that involves a huge increase in free time that needs to be
filled, a greater reliance on social interaction, spending a lot more
time with your partner (and, unfortunately, without for those who
outlive their spouse) and predictable physical and mental decline." Read the details in this well-written discussion to hellp you prepare: http://www.thinkadvisor.com/2014/01/27/what-makes-a-successful-retirement?t=the-retiree&page_all=1
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