Retirement Income Replacement Required Not as High as Pre-Retirees Think
As reported by Lee Barney, at PlanSponsor.com, half of retirees indicate they spend less in
retirement than they did when they worked.
Retirees are less concerned than pre-retirees about their money lasting throughout retirement;
rather, they are more concerned about declining health, according to a survey by Greenwald &
Associates who conducted an online survey among 801 retirees and 804 pre-retirees in January
for Massachusetts Mutual Life Insurance Co.
Will savings last throughout their lifetime?
- 91% percent of retirees say yes vs. 56% of pre-retirees.
Will they have enough money to enjoy themselves in retirement?
- 28% of pre-retirees worry they will not vs. only 7% of retirees.
In fact, 29% of retirees’ biggest concern is health care costs.
|Enough Income in Retirement||51%||78%|
|Change in Social Security Benefits||69%||81%|
|Low Interest Rates Impairing Income||57%||69%|
60% of pre-retirees think it will take at least two-thirds or more of their pre-retirement income
to live comfortably in retirement but merely 44% of retirees say this is an actuality.
33% of pre-retirees think they will need 75% or more of pre-retirement income, but 33% of
retirees indicated they need less than 50%.
“While many retirees can manage their expenses to lower income levels in retirement, the rising
cost of care may steadily reduce their lifestyles as they age,” says Tom Foster, head of retirement
plans practice management at MassMutual. “It’s far better to err on the side of having more
rather than less income than you anticipate needing, especially as costs for care continue to
70% of pre-retirees think they will need to spend less in retirement than in their working years.
50% of retirees say they spend less, 41% say they spend the same amount, and 8% say they
Eighty-four percent of pre-retirees wish they had started saving sooner, but only 55% of retirees
say the same.