10 Top Ways Retirees Plan to Spend Their Savings
Retirees plan to use their savings in ways that may surprise you.
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Despite the uncertainties of the last year, nearly three-quarters (74%) of a representative sample of American workers and retirees recently told pollsters they’re feeling “confident” they’ll have enough money to last the rest of their lives.
Roughly one-third of those optimists (29%) are “very confident,” according to the annual Employee Benefit Research Institute’s annual Retirement Confidence Survey.
Pollsters for the nonpartisan think tank interviewed a racially and ethnically diverse sample of 3,017 people age 25 and older. About half were retirees; the rest were workers. The research was done in January 2021. The EBRI routinely studies topics related to workers’ retirement, health and benefits.
Why Many Workers Have to Retire Earlier Than Planned
Save aggressively and stay flexible.
Photo by Dusan Petkovic / Shutterstock.com
Most people don’t want to work their whole lives, but financial necessity leads many of us to plan on a late retirement.
A recent study from the Employee Benefit Research Institute (EBRI), however, shows that the ability to work as long as you want might be more illusion than reality.
The study found workers consistently retire earlier than they predicted. Additionally, people overestimate the likelihood that they will continue working in some capacity after they retire.
Knowing that is half the battle. It’s important not to count on the ability to work until age 65 or beyond to pad your savings. Here are three ways you can face an earlier-than-intended retirement with a plan in your pocket.
Despite Covid, Americans Are Confident About Retirement
Retirement confidence continues to be strongly related to retirement plan participation.
Author:
May 6, 2021 8:00 AM EDT
Nearly three in 10 Americans (29%) feel very confident in their ability to retire comfortably, according to the 2021 Retirement Confidence Survey (RCS) just published by the Employee Benefit Research Institute (EBRI).
And 80% of retirees report feeling either very or somewhat confident about having enough money to live comfortably throughout their retirement years, Craig Copeland, EBRI Senior Research Associate and co-author of the report, said in an interview.
Not surprisingly, retirement confidence continues to be strongly related to retirement plan participation, whether in a defined contribution plan, defined benefit plan, or individual retirement arrangement. Workers reporting they or their spouse have money in one of these plans are nearly twice as likely as those without any of these plans to be a
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