Each year for its Retirement Confidence Survey, the Employee Benefit Research Institute (EBRI) surveys 1,000 workers and 1,000 retirees to assess how confident they are in their ability to afford a comfortable retirement. The survey results reveal lessons that today’s workers can learn from current retirees.
Have realistic expectations for retirement age
The survey consistently finds a big gap between workers’ expectations and retirees’ actual retirement age. In 2019, the gap is three years; workers expect to retire at median age of 65, but retirees’ median age of retirement is 62.
The reality is that more than four in 10 retirees retired earlier than planned, often due to a health issue or change in their organizations. Estimating retirement age is one area where workers may want to hope for the best but prepare for the worst.
Some expenses, particularly health care, may be higher than expected
Approximately a third of retirees said their overall expenses were higher than anticipated. Nearly four out of 10 said health care expenses were higher. When building a retirement plan don’t forget to factor in inflation, get educated on Medicare and earmark saving goals specifically for health care expenses.
Don’t count on work related earnings
Of today’s workers, 74 percent expect work-related income to be at least a minor source of income in retirement. Currently, just one in four retirees work for pay, so workers should have another plan if they can’t continue to work in their retirement years.
Make a plan for retirement
Planning can be the key to a successful retirement. No matter if you are months or years from retirement, a plan can help you make the most of your time. The professionals at TFCU Financial Advisors are available to help you start your retirement plan. Call today for a no cost, no obligation appointment at a TFCU branch near you.
TFCU Financial Advisors
6501 Tinker Diagonal, MWC
(405) 737-0006
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