Pre-Retirees, Retirees Have Different Ideas About Life After Work

Survey results released Thursday by the insurance company ING U.S. found that pre-retirees may be in for a rude awakening when they stop working. Although just 8% said they expect to have a lower standard of living in retirement than they do currently, 33% of retired respondents said they’ve had to cut back now that they aren’t working.

In a separate survey conducted online by ING in June, 80% of respondents said they would rather tighten their purse strings now to guarantee income in retirement. Almost 40% still expected to run out of money in retirement. That might not be very surprising, though, considering over a third of respondents think they can retire comfortably with $500,000.

ING found that advisors were a significant factor in respondents’ confidence. Almost 90% of respondents who work with an advisor said they’ve calculate what their current savings mean for their monthly income in retirement, compared to 59% of those without an advisor. While 37% of respondents thought it likely that they’d run out of money in retirement, among those without an advisor, 41% had the same fear.

“Don’t get me wrong; change is good and we all hope to get to that point at some time, but without some help, a retiree can easily get thrown off course,” Rich Linton, president of individual markets for ING U.S., said in a presentation discussing the surveys’ results.

Source:  ThinkAdvisor

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