When you provide financial management services, especially if you help clients planning for retirement, then you know better than anyone how much anxiety there is out there. Every month, new studies come out showing that Americans are saving less, working longer, and are more worried about retirement than ever before.
Now, two new studies confirm what financial planners have known all along. Americans approaching retirement are scared, even if they are financially secure. The latest annual study from the Insured Retirement Institute showed that only 24% of Baby Boomers are confident they have enough savings to sustain them throughout retirement. That's the lowest number since the IRI started tracking this data.
The Allianz Life 2016 Inflation Study
The Allianz Life 2016 Inflation Study came to the same conclusion, with 28% describing their retirement confidence level as 'worried,' 36% of respondents saying they were 'very concerned,' and 11% said they were 'terrified.'
So is the retirement sky really falling, so to speak? Not quite. Yes, there will be many people who will probably run out of retirement savings prematurely, but that's been the case ever since the concept of retirement was first invented back in 19th century Germany. And if this present day anxiety over your finances inspires you to start better managing your retirement income, then so much the better.
So What’s Next?
For the next 20 years, at least 10,000 people will retire daily. Today only 13% of Americans are over the age of 65, but by 2030, that number will reach 18%, and by 2050, there will be 90 million seniors. The people whose retirement savings last are the ones who start planning early (or today, at least).
Even people already in retirement can benefit from an independent investment and cash flow review. If you're worried about managing your retirement income, then don't hesitate to reach out to a financial advisor who specializes in retirement income planning to make sure you are making the most of your retirement income.
Far too many Americans saved money for retirement using a one size fits all retirement plan provided by their employer or bank, and many of these people could greatly benefit from a pair of fresh eyes. The times and economic headwinds change, and so should the way you're managing your retirement income.