Everyone has heard the statistic: more than 10,000 Americans are turning 65 each day. As a result, more than 66 million Americans will be retired by 2025.
Retirement has been portrayed as aspirational: a time to pursue the goals and dreams you didn’t have time to do when you were working. However, for many retirees, lack of planning and resources can undermine their retirement security.
Recent LIMRA Secure Retirement Institute (LIMRA SRI) research finds less than half of American retirees are confident that their savings will not run out in retirement. LIMRA SRI explored what retirees can do to improve their retirement outcomes and give them peace of mind.
Overwhelmingly, LIMRA SRI studies show those who conduct formal retirement planning with an advisor increases retirees’ confidence in their retirement security. Research shows 75 percent of U.S. retirees who have a formal retirement plan are confident that they will be able to live their chosen lifestyle. Just 63 percent of retirees without a plan feel the same.
The top two financial goals for Americans are to have enough money to last throughout their lifetime and to remain financially independent. Earlier LIMRA SRI research revealed many retirees underestimate their retirement expenses in the areas of basic living expenses, health care and long-term care expenses, and discretionary expenses with the biggest disparity in the area of health care and long-term care expenses. Working with an advisor to develop a retirement plan can help provide a realistic understanding of their assets and expenses and develop strategies to mitigate the financial risks associated with health care and long-term care expenses.
July is National Retirement Planning Month. LIMRA SRI recommends using this time to contact your advisor and work on your retirement planning activities. The earlier you start planning the more confidence you’ll have in your financial security in retirement.