A lot has happened in 2022. A bear market and rising inflation have people who are about to retire scared. They’re worried about their retirement, and rightly so. In this episode of Retirement Made Easy, I’ll talk about some important statistics from the Schroders 2022 US Retirement Survey and what they mean. I’ll share the easiest thing you can do to make sure you’re prepared to retire. Lastly, I answer a couple of listener questions. Listen to this episode to give yourself some peace of mind!

You will want to hear this episode if you are interested in…

  • [0:21] Check out the FREE resources at RetirementMadeEasy.com
  • [3:18] Important statistics from the Schroders 2022 US Retirement Survey
  • [9:43] The top 6 reasons why people are concerned about retirement in 2022
  • [13:09] Retirees are spending more than they anticipated
  • [14:10] Why you need a written retirement plan
  • [16:07] Listener Question #1: How is a fiduciary different?
  • [17:59] Listener Question #2: What can you expect to pay a CFP?

What’s the perception of the amount of money someone needs to retire comfortably?

Schroders surveyed working Americans 45 and older and retired US citizens. They asked: “What’s the perception of the amount of money someone needs to retire comfortably?” The survey results found that the average person believes you need $1.1 million to retire.

But are most people on track to have $1.1 million saved to retire? The short answer? Not at all.

  • Only 24% of Americans expect to have $1 million in savings before they retire.
  • 20% said they’d have $500,000–$1 million
  • 56% expect to have less than $500,000 saved

Of the people surveyed who were between 60–6769% had less than $500,000 saved for retirement54% of those pre-retirees had less than $250,000 saved.

If people think they need $1.1 million to retire comfortably, how many actually had it saved? Sadly, only 16%. In 2021, 26% of people surveyed aged 60–67 thought they had enough money to retire. In 2022, the number dropped to 22%. That’s not good.

How are currently retired people describing their retirement?

Schroders took it one step further and asked retirees how they’d describe their retirement:

  • Is it comfortable?
  • Not great, not bad?
  • Living the dream?
  • Struggling?
  • A living nightmare?

Thankfully, only 5% said their retirement was a living nightmare. 18% were struggling, and only 3% said they were living the dream. 37% said they were comfortable and about the same felt it wasn’t great, but wasn’t bad. I’d like to see at least 50–60% living a comfortable retirement. Isn’t that where you want to be?

The top 6 reasons why people are concerned about retirement in 2022

What concerns have people fearing retirement?

  • Inflation: People are scared of the impact inflation will have on the assets they’ve built. 65% of people listed inflation as their top concern.
  • Healthcare costs: Higher than expected healthcare costs concern people (sadly, this will continue and you must plan for it).
  • Major market downturn: This is what we’re experiencing in 2022 with the current bear market. This will impact retirement accounts.
  • An unexpected health issue that could drain someone’s savings. As you get older, you’ll focus more on healthcare.
  • Taxes. People are concerned that taxes will reduce their retirement savings. This is something a financial planner can easily help you with.
  • Not being able to afford the lifestyle they desire. Everyone wants to maintain the lifestyle they’ve become accustomed to.

They asked retirees if their expenses in retirement were more than they anticipated, less than they anticipated, or about the same.

  • 44% said their expenses were higher than they expected
  • 8% said their expenses were lower than expected

Only 23% of retirees said they had a written retirement plan. That’s a HUGE mistake. You need a retirement action plan that covers taxes, investments, estate planning, and more to afford the lifestyle you want in retirement. Of those that had a retirement plan, 91% said the plan was useful to them. 33% said it was critical to the success of their retirement. The people that make retirement planning a priority are the ones that will succeed.

If you need help planning your retirement, reach out to me at RetirementMadeEasyPodcast.com!

Listen to the whole episode to hear the answer to two great listener questions!


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