Yeah, I know, another survey. I am always leery of surveys, but often that’s all we have to gather information.
Amid all the analysis, the hand wrenching and political rhetoric, most retirees are doing okay. Where we make our mistake is assuming a lower income in retirement always means a unsustainable retirement.
According to the TransAmerica 20th Annual Transamerica Retirement Survey of Retirees
Amid the pandemic, 76 percent of retirees are confident that they will be able to maintain a comfortable lifestyle throughout retirement, with 29 percent being “very confident” and 47 percent being “somewhat confident.” Eighteen percent are “not too confident,” while six percent of retirees are “not at all confident” that they will be able to maintain a comfortable lifestyle throughout retirement.
Retirees currently have a wide variety of savings and investments, including checking accounts (77 percent), savings accounts (62 percent), and equity in their primary residence (47 percent).
Nearly all retirees (95 percent) expect Social Security to be a source of income over the course of their retirement. The other most frequently cited sources of retirement income include other savings and investments (40 percent), 401(k)/403(b)/IRAs (35 percent), and company-funded pension plans (30 percent). Relatively few retirees cite home equity (9 percent), inheritance (6 percent), or paid work (3 percent) as sources of income.
Twelve percent have no savings and investments.
Given the number of years they will be spending in retirement, retirees have limited household savings. Retirees have $45,000 (estimated median) in household savings (excluding home equity).
Twenty-one percent have savings of less than $50,000, while 16 percent do not have any savings.
Thirty-three percent of retirees have savings of $100,000 or more. Retirees have $78,000 (estimated median) in home equity.
Thirty-nine percent have home equity of $100,000 or more. Twenty-four percent do not have any home equity.