2023 Survey Reveals Retirement Expectations Versus Reality

A recent study compares the retirement expectations of pre-retirees age 50-plus to the actual reality of retirees. Published by the Transamerica Center for Retirement Studies® (TCRS), the online survey covers a wide range of pertinent retirement topics yet one conclusion is consistent: the reality of your retirement may be far different than the plans you’re making, now.  

Retiring Far Sooner Than Planned 

The study reveals that 66% of workers age 50-plus plan to retire around age 65 or not retire at all. Yet, only 31% have a backup plan for income if they need to retire sooner. Meanwhile, the reality of retirees indicates that many retire several years earlier than planned:   

• 45% retired sooner for chronic health issues, physical limitations or disability. 
• 42% retired sooner for employment reasons such as unhappiness, organizational changes, job loss, and/or a buyout.
• Only 17% retired sooner because they could afford retirement. 

Another reality check: 75% of retirees worked far longer than planned due to financial reasons or the need for employer benefits.

“When it comes to emergency savings, pre-retirees age 50-plus may not be able to cover the cost of an unexpected major financial setback.”

Saving Enough For Retirement  

More than half of workers age 50-plus believe they are building a large enough nest egg for retirement. Yet, the estimated median reported is $133,000 in total household retirement savings:

• 37% have saved less than $100,000.
• 23% have saved $100,000 to less than $500,000.
• 14% have saved $500,000 to less than $1,000,000.
• And 14% have saved $1,000,000 or more

When it comes to emergency savings, pre-retirees age 50-plus may not be able to cover the cost of an unexpected major financial setback. According to the survey, their median emergency savings is only $10,000 while 14% have no emergency savings at all.

73% Of Retirees Surveyed Regret Not Saving More For Retirement 

It’s important for pre-retirees to learn from the mistakes of those who have already entered retirement. One crucial warning revealed by the survey: 73% of retirees say they wish that they would have saved more on a consistent basis. Other financial regrets include:

• 66% wish they had been more knowledgeable about saving and investing for retirement.  
• 49% would have liked to had more information and advice from employers on how to achieve their retirement goals. 
• 45% regret waiting too long to actively save and invest for retirement.
• 42% wish they would have relied more on outside experts to monitor and manage their retirement savings. 

You have time to avoid making the same mistakes. Start working with an FRC® trained advisor who can help you plan a financially-secure federal retirement.