Retirable, the first-of-its-kind holistic retirement solution, today announced the release of its first ‘State of Retirement’ study, which sums up how more than 2,000 U.S. individuals nearing and in retirement plan to spend their time, money, and resources.
Known for its holistic approach to retirement alongside the ongoing care of an advisor, Retirable is designed for the 50 million Americans approaching retirement in the next decade without a formal retirement plan. Retirable is on a mission to provide ongoing management from a dedicated fiduciary advisor to help clients spend retirement income efficiently, make savings last, and navigate key decisions throughout retirement.
Key Takeaways:
- More than 3 in 5 (64%) respondents plan to spend/are spending their retirement years maintaining their current lifestyle. Only about 1 in 8 (13%) plan to split time in a vacation home and their main property, while only 8% plan to travel.
- More than two-thirds (67%) of respondents have not met with an advisor to create a financial plan, and less than one third (31%) have.
- Nearly two-thirds (63%) of respondents do not feel like they have enough money to last them through retirement or are unsure if they do, while less than 3 in 10 (27%) respondents are confident their savings will last them through retirement.
- More than half (52%) of respondents are considering taking on part-time jobs, or are uncertain if they will have to.
- Less than half (44%) of Americans have discussed retirement planning with their children—and only 15% plan on doing so.
- 4 in 10 (41%) of near retirees are confident in their month-to-month spending in their current state and moving into retirement.
How individuals are spending their retirement
Oftentimes, retirement is seen as a time when retirees want to travel, move, or make big life changes. However, according to Retirable’s ‘State of Retirement’ survey, retirees are looking to maintain their lifestyles into their retirement years, with a minority of respondents expressing a desire to move. This pattern might be tied to evolving expectations as individuals get older, given more respondents aged 75+ plan to forego moving or traveling, while those between ages 55-64 expect to prioritize travel in their retirement years.
Overall, respondents believe they will retire by the age of 68. Despite female respondents expressing they have a smaller retirement savings fund in comparison to male respondents, more women believe they are likely to retire before their male counterparts. The survey also revealed that individuals’ expectations of when they will retire shift as they age, with individuals anticipating to retire later as they get older. This is linked with demographics as female respondents were more likely to not have a plan for retirement than male respondents (22% vs 17%), and single people also fell behind their married counterparts in retirement planning (29% vs 16%).
Data Supporting
- 7 in 10 (69%) respondents aged 75-84 plan to spend/are spending their retirement years maintaining their current lifestyle, whereas just under 3 in 5 (59%) of those aged 55-64 said the same.
- On average, male respondents currently have $367,125 saved for their retirement, whilst female respondents have $257,593.
- On average, male respondents believe they will retire at age 70, whilst female respondents believe they will retire at 67.
- On average, respondents aged 75-84 believe they will retire at age 80, compared to respondents aged 55-64 who believe they will retire at age 65.
Healthcare, housing and expenses
Respondents are largely aware of how to access and take advantage of vital programs, such as Medicare and Social Security. This is good news, as the majority of respondents anticipate healthcare to be their largest expense during retirement. Given the current state of the economy, many individuals also showed concern that the cost of living as well as mortgage/rent would also likely be one of their largest expenses during retirement.
Data Supporting
- More than 2 in 5 (44%) respondents anticipate healthcare to be the largest expense during their retirement years.
- 2 in 5 (40%) respondents anticipate living/lifestyle costs to be the largest expense during their retirement years.
- A third (33%) of respondents anticipate mortgage/rent to be the largest expense during their retirement years.
- More than 2 in 5 (46%) respondents aged 75-84 anticipate living/lifestyle costs to be the largest expense during their retirement years, whilst 2 in 5 (40%) of those aged 55-64 said the same.
Savings, spending and advisory
A very small percentage of respondents in the pre-retirement group (ages 55-64) reported confidence in their current month-to-month spending and saving. Despite these low confidence levels, a majority have not considered meeting with an advisor to address their concerns. The likelihood of having met with an advisor increases based on the age of the respondent, with over a third of respondents aged 75+ reporting they have met with an advisor, compared to under a quarter of those aged 55-64. This could very likely be due to the inaccessible nature of traditional financial advisors. On average, respondents currently have $310,530 saved for their retirement, and believed that they would need about $873,000 to retire comfortably. One-third reported that they do not yet have enough money to last through retirement. This doesn’t necessarily indicate that two-thirds of respondents have reached their financial goals. However, this does signify that at their current state, with the addition of entitlement benefits, and with potential income from a part-time job, they are confident in their savings lasting through retirement years.
Data Supporting
- More than half (55%) of respondents aged 75-84 are confident with their current month-to-month spending, whilst just under 3 in 10 (29%) of those aged 55-64 said the same.
- Nearly 2 in 5 (37%) respondents feel like they have enough money to last them through retirement, whilst more than a third (35%) do not feel they have enough money to last them through retirement.
- Of respondents who reported interest in having a part-time job during retirement, 7 in 10 (71%) are seeking extra income outside of retirement savings and two-thirds (65%) want to stay busy/active, while a quarter (25%) want to continue growing retirement savings.
Preparing the next generation
As retirees age, they are communicating more with their children about their retirement planning — a shift away from previous sentiments that have shown parents do not typically involve their children in financial discussions. Furthermore, parents reaching their retirement years are making sure the next generation is set for retirement despite a general lack of confidence in their own retirement planning. Despite having more conversations with their children about retirement, respondents are more likely to leave assets for their children (47%) than they are to contribute financially to their child’s retirement plan (6%).
Data Supporting
- About 3 in 5 (59%) respondents said they have discussed how to start planning for retirement with their child(ren), with 15% reporting they have had several conversations about it.
- Another 15% of respondents claim they are planning to have this discussion, but have not done so yet.
- Nearly a quarter (24%) of respondents have consulted their child(ren) about their finances and/or retirement plans.
- 3 in 5 (59%) respondents claim they would trust a recommendation from their child(ren) about what to do with their finances as well as who to see or what company to seek out assistance from. Women are slightly more likely to trust a financial recommendation from their child(ren) in comparison to men (62% v. 55%).
For more information about Retirable and its retirement offerings, please visit www.retirable.com.
To see infographics on this data and additional assets, please view the Retirable Media Kit.
Methodology
The national survey was conducted online by CensusWide on behalf of Retirable between January 10-17, 2023. Survey participants included 2,050 participants, of all genders, across the United States. Participants were all over 55 years old, and the survey did not include ultra high net worth individuals.
About Retirable
Retirable, the first-of-its-kind holistic retirement solution with the ongoing care of an advisor, offers products and services across the retirement investing, planning and spending spectrum. Retirable was founded by industry veterans to empower a worry-free retirement for everyone. By opening access to financial guidance for retirement, Retirable gives its clients greater confidence and control when they need it most. Headquartered in NYC and founded in 2019 by Tyler End, Ian Yamey and Brian Ramirez, Retirable is backed by Primary, Diagram, Vestigo Ventures, Portage and Primetime Partners.
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