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.
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