Wealthy Americans Could Be Overlooking Critical Retirement Costs, says Schwab
According to a new survey from Charles Schwab, the confidence expressed by affluent Americans regarding their retirement readiness may be unfounded. And while the company found that over 80 percent of investors have an in-place retirement plan, and are confident in their provisions, survey respondents reported needing an average of $66,000 per year compared to their far higher $115,000 current average income. On average, respondents also plan to work until the age of 67 with expectations to live until 86, indicated an expected length of retirement of 19 years.
The Schwab survey notes that one-third of investors feel completely prepared for retirement while an additional 51 percent are at least moderately prepared. As far as plans beyond retirement, the survey found that 39 percent plan to do no work, 46 percent will consider working part time, and just 10 percent feel that they will have to work at least part time in order to stay financially afloat.
Compared to last year, 23 percent of investors feel more optimistic about their retirement preparedness while 24 percent are less optimistic. Just over half of respondents reported unchanged confidence levels. Over one half of respondents also reported that their main concern post-retirement is confronting unexpected expenses, primarily medical costs. Schwab suggests that even confident investors should still give their financial plan another look in order to ensure the reaching of their retirement goals.