You may know how I feel about survey reliability, but in this case there are multiple sources pointing to the fantasyland many people live in when it comes to retirement.
It just isn’t going to be ones golden years unless they work at it and defer some spending for those years.
Based on recent research by the Insured Retirement Institute (IRI), a trade group for the annuity industry;
Older workers are under saved … 51% have less than $50K saved for retirement
… they are not saving enough … 57% save less than 10% of income
… and they are insecure about retirement finances… Only 44% think they will have enough income throughout retirement
Retirement Income Expectations are Unrealistic…
More than one-half think they’ll need $55K+ a year; one-third think they’ll need $75K+ [that may be okay for 2021 retirees, but not so for those retiring in 20+ years]
Despite low savings and lofty income expectations, one-third think they’ll retire prior to age 65 and one-half at 65 or younger
I gave my 34 yr old son a reality check on Friday. He showed me his possible Army pension statement when he retires with 20 years around 2025. He has about 4 years active, the rest is guard, and is a union mason finisher for his civilian job. The army pension projection was to be about $1200 / month. Then I told him how much I get in my pension and that I am supplementing now from my 401k due to inflation this year. The reality part was I pointed out that he will need 5 to 6 of those army pension checks just to cover his property taxes in New Jersey today. I told him he better be saving if he wants to eat.
He assured me that his wife has all that handle. I don’t believe that he actually ever thought about how far or how little the pension money will go in today dollars, let alone in retirement with inflation.