Most Americans haven’t worked with a financial advisor, a decision that could potentially upend their retirement years down the line.
Just-released research from fintech and retirement solution Retirable found 67% of respondents have not met with a financial advisor to create a financial plan, while just 31% have.
It’s a troubling finding, as Retirable’s research finds more retirees (64%) want to preserve their lifestyles during retirement, with even a minority expressing a desire to move. Currently, 69% of respondents ages 75 to 84 plan to spend or are spending their retirement years maintaining their current lifestyle, with 59% of those between 55 to 64-years-old saying the same.
Those ages 55 to 64 were also likelier to say they will prioritize travel during their retirement years.
This is as nearly two-thirds of respondents either believe they will not have enough money to last them through retirement or are unsure. On average, male respondents currently have $367,125 saved for their retirement and anticipate retiring at age 70, while female respondents have $257,593 and believe they will retire at 67-years-old.
Healthcare competes as one of the top expenses
The research notes that while respondents were aware of the benefits in government programs including Social Security and Medicare, a third (33%) project mortgage and rent costs will be a leading expense throughout retirement, with 40% expecting it to be their top expense.
More than two in five (44%) say healthcare will be their largest expense during retirement, while 46%of respondents ages 75-84 anticipate living/lifestyle costs to be the largest expense during their retirement years, and 40% of those ages 55-64 believing the same.
As age increases, so does likelihood of advisor meetings
Retirable’s research analyzed the groups of participants likelier to meet with a financial advisor, finding that the probability of meetings grew as participants aged. Over a third of respondents over age 75 said they had met with an advisor, compared to under a quarter for those ages 55 to 65.
Looking out for the next generation
A set of findings from the study displays how the current generation of retirees are preparing their children for long-term savings. Not only are these groups speaking to their children more about retirement (59%), but respondents are also likelier to leave assets for their kin (47%).
Other findings suggest parents are more open to discussing finances with their children, with nearly a quarter (24%) of respondents having consulted their children on their finances and/or retirement plans, and 59% claiming they would trust a recommendation from their children on what to do with their finances or who to seek assistance from.
Additional findings from Retirable’s “The State of Retirement 2023” can be found here.
SEE ALSO:
- Over 80% of Americans Halted or Withdrew from Retirement Savings in 2022
- Americans Remain Confident in Retirement Savings, Despite Market Uncertainty
- Why Investors are ‘Terrified’ About Retirement Savings
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.