Retirees have realistic expectations
Retirees have overall fairly realistic expectations regarding their income needs and spending priorities in retirement, according to State Street’s Global Retirement Reality Report.
The study found that although many people were concerned they were not saving enough, younger generations admitted they were willing to consider postponing retirement or working part time.
According to the State street’s report, people began to see retirement more of a process rather than a singular event which would require workplaces, legislation and retirement products to evolve.
However, the study also found that only one in five thought all would be well when they retire. This was consistent with most other major countries, apart from the United States.
At the same time, close to 40 per cent of the workforce said they would not have enough money in retirement and over one third of the workforce did not know how much they saved and 43 per cent didn’t know how their savings were invested.
The report said most people expected their income to drop by 50 per cent when they retired and when that happened they would cut back on what they spent on clothes, entertainment and technology.
Also, close to half of the working population said they would consider selling their house and living in a smaller one to help pay for their retirement.
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