Planning for Retirement? Here’s What Retirees Have to Say

For those approaching retirement, the gap between expectations and reality can be significant. While many people hope to work part-time, retire later, and rely on savings, the data suggests that these plans don’t always come to fruition.

Retirement Reality vs. Expectations

Working Part-Time
Many Americans envision supplementing their income with part-time work after retirement, but few actually do.

• 20% of near-retirees expect to work part-time.
• In reality, only 3% of retirees hold part-time jobs, according to a Gallup poll.

Age of Retirement
Though most plan to retire at age 66 to maximize Social Security benefits, the average retirement age is 62. Health issues or family obligations often force people to leave the workforce earlier than expected.

Sources of Income

Non-retirees and retirees often have very different views about where their money will come from:

• Social Security:
  • 59% of retirees rely on it as a major source of income.
  • Only 34% of non-retirees expect it to play a major role.
• Retirement Savings and Accounts:
  • 48% of non-retirees plan to rely on savings.
  • Only 27% of retirees say savings are a major income source.

Comfort Levels in Retirement

Despite these discrepancies, most retirees report that they’re living comfortably:

• 77% of retirees describe their financial situation as comfortable, a slight drop from 80% in 2002.
• However, non-retirees are less optimistic. Expectations of retiring comfortably have fallen 10 points since 2021.

Concerns About the Future

Inflation and concerns over the stability of Social Security are weighing heavily on the minds of future retirees:

• Over 70% of non-retirees are somewhat worried about their retirement income.
• 42% are very worried about having enough to live on.

Key Takeaway

Planning for retirement requires flexibility and a realistic outlook. Health, the economy, and unforeseen circumstances can derail the best-laid plans. Building a robust savings cushion and staying informed about Social Security and other benefits are essential steps for a secure and comfortable retirement.