According to a recent study, Baby Boomers nearing retirement might be in for a wake-up call, as many have expectations for retirement that aren’t in line with their financial and employment realities.
The study found that among those nearing retirement, 67 percent plan to keep working past age 65, and some say they don’t plan to retire at all. Nearly 40 percent expect to earn income by working during retirement
Yet, nearly two-thirds of recent retirees (61 percent) say they retired before age 65. The median age at which they stopped working was just 62. Only 6 percent of recent retirees are earning income from working.
Boomers who assume they’ll be able to work longer could be putting their retirement security at risk. Among the near-retirees surveyed, the median retirement savings was just $135,000, not nearly enough to support a long retirement. Just 15 percent strongly agree that they’ve saved a large enough nest egg. Among those who have already retired, 76 say they wish they had saved more.
How can Boomers avoid a hard reality check? Planning is key. More than one-third (35 percent) of near-retirees haven’t made a retirement plan, and only 14 percent have put their plan in writing. Yet, fully 68 percent of those who have already retired wish they had learned more about retirement saving and investing while they were working. Having a proper plan in place can help Boomers prepare for all possible outcomes, in case their expectations don’t align with reality.