Global Atlantic Retirement Spending Study finds that Pre-Retirement Perception Differs from Retirement Reality
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(Graphic: Business Wire)
With countless surveys every year indicating that Americans are financially unprepared for retirement, Global Atlantic set out to examine the finances of both retirees and those saving for retirement. By collecting and analyzing data from over 4,000 people across
While the typical non-retired
Diversity of Income Streams Reduces Need for Retirement Cutbacks
The study also examined retirement spending among those with additional sources of income. Retirees collecting income from pensions or annuities are able to sustain significantly more expenses than those who do not.
The average retiree with a pension spends 39% more that those without a pension (
“Many Americans adjust their lifestyles and cut spending once they see how quickly costs can add up in retirement,” said
More than half (56%) of non-retired Americans ages 40 and up place high importance (9 or 10 on a 10-point scale) on generating ongoing income to pay for basic living expenses in retirement, such as housing, food, transportation and utilities. Two-thirds (66%) say that they are on track to generate enough income to meet these needs.
“Financial planners have traditionally used the analogy of a three-legged stool to discuss retirement planning; the three legs symbolized
Retirees, Especially Women, Regret Retirement Planning Missteps
The fact that retirees spend less than non-retirees may not be by choice, as more than half (55%) of retirees have retirement planning regrets. The top three financial regrets are:
- not saving enough (36%)
- relying too much on
- not paying down debt before retiring (12%)
Women are more likely than men to have retirement planning regrets (62% of women vs. 47% of men.) Consequently, more women than men adjusted their lifestyle in retirement with spending cutbacks on restaurants and entertainment (51% vs. 42%) and travel (42% vs. 34%).
Retirees who do have annuities are significantly less likely to have retirement planning regrets than those who do not have annuities (42% of those with annuities have regrets, compared to 58% who do not have annuities). Similarly, those with pensions are less likely to have regrets than those without pensions (43% vs. 65%).
To view more data, insights and interactive graphics from the Global Atlantic Retirement Spending Study: Perception vs. Reality, including data referenced in the press release, please click here.
The Global Atlantic retirement study was completed online among a random sample of the general
A total of 4,223 consumers participated, equally representing retirees and individuals not retired. Fieldwork was led by independent global market analytics firm
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