“Buoyed by a growing economy and stock market gains, more Americans are feeling confident about their ability to afford a comfortable retirement, according to a long-running national survey released this week. Still, there are big gaps in confidence between workers who have a retirement plan, such as a 401(k), and those who don’t, according to Consumer Reports.”
Tag: retirement planning
Working “Unretirement” into Retirement/Financial Plans
“Unretirement is becoming more common, researchers report. A 2010 analysis by Nicole Maestas, an economist at Harvard Medical School, found that more than a quarter of retirees later resumed working. A more recent survey from RAND Corporation, the nonprofit research firm, published in 2017, found almost 40% of workers over 65 had previously, at some point, retired.”
Many Baby Boomers Postponing Retirement Due to Challenges at Home, Financial Issues
More than one-quarter (26%) of older U.S. baby boomers support their adult children financially or have them living at their home. The pressure on some baby boomers to support both adult children and aging parents, while also struggling to afford their own retirement, are factors that can lead to a delayed retirement. More than two-in-five (42%) baby boomers said they have postponed their retirement due to financial issues.
Financial Advisors Should Tweak Approach, Target Younger Generations
Different generations responded differently to the recession. A new report from Financial Finesse brings to light just how distinctly the characteristics of each generation impact financial behaviors and habits. Analysts say the distinct differences among generations are why it is crucial for financial professionals to reform their traditional approach to financial planning and adopt a new approach that targets younger generations’ concerns.
Retirement Conversations Need to Start Sooner to Help Achieve Best Possible Outcomes
While more working baby boomers with pensions indicate they are more likely (56%) to retire at or before the traditional age of 65, almost half still expect to retire with debt, according to a recent Fidelity Investments survey. Regardless of whether they have access to pension payments in retirement, seven out of 10 retired boomers said they wished they had done more to save for retirement during their working years.
Many American Workers Largely Unprepared for Retirement
New research released recently by the non-profit Transamerica Center for Retirement Studies underscores how American workers are largely unprepared for retirement and, further, how relatively few have a backup plan in the event they are forced into retirement earlier than planned. According to The Center’s research, 40% of respondents now expect to work longer and retire at an older age since the recession began. Altogether, 39% of American workers plan to retire after age 70 or not at all, and over half (54%) of workers plan to work in retirement. Of those who plan on working after retirement or age 65, the most commonly cited reasons are out of necessity (44%).
