When it comes to gauging retirement preparedness, do you have a good sense of whether your savings are on track to fund the retirement life you envision? Are you looking for some benchmarks? Follow along as we explore key findings of a national poll conducted in partnership with Kiplinger’s Personal Finance. We surveyed 1,014 investors between the ages of 35 and 64, equally divided between men and women, to reveal some common measures of retirement readiness.
This is part two in our series “Are You Retirement Ready?”
This week, we’ll focus on retirement living. What are your hopes for your lifestyle in retirement?
What is Your Ideal Retirement Lifestyle?
Everyone has their own personal vision of what retirement means to them. Most of our respondents are looking forward to having more time for travel, relaxation, recreation and family visits.
To achieve those goals, they’re taking steps to forecast what future budget needs may be. The top three things our survey group expects to spend more on during retirement include travel, medical care and visiting family. At the same time, they expect to devote less money to housing, gifts and eating out.
And while pulling up roots is a major decision, 34% of those we polled are thinking about it. As our respondents consider relocation in retirement, they say they’ll weigh these top four criteria:
- Lower taxes
- Lower cost of living
- Warmer climate
- Closer to family
Why We’re Choosing to Work Longer
Keeping flexibility in mind is important when evaluating all potential incomes sources for retirement. Our respondents acknowledge this fact, with nearly half (47%) saying they expect to continue working in some capacity.
Working past retirement age can provide a tangible boost to retirement savings, fattening your nest egg and growing your Social Security benefits. On top of that, staying engaged in satisfying work—whether it be full-time, part-time or on a consulting basis—can deliver some intangibles, too.
With these thoughts in mind, our survey group identifies these top four reasons for continuing to keep one foot in the workplace:
- Earning extra income
- Feeling useful
- Saving more for retirement
- Staying connected to work colleagues
→ How do you know if it’s the right time to retire? Learn more.
Do You Have a Saving & Spending Plan?
“What if” scenario planning helps you prepare for all the expenses that could stand in the way of your ideal retirement. By understanding your income sources and anticipating major financial events—such as paying for college, buying a home or covering medical expenses—you’ll be able to see any potential impact on your retirement funds and keep any surprises from derailing your dreams.
→ Take the guesswork out of your planning with this free Retirement Planner tool.