Senior Spotlight: Data Shows Optimism In Retirement

80% Of Retirees Report That The Pandemic Has Not Derailed Their Retirement.

The economic impact of the Covid-19 pandemic is NOT what most Baby Boomers planned to experience during their retirement years. Challenges such as involuntary retirement, market volatility in investments, older adult children moving back in and collecting Social Security earlier than planned have created an unexpected change of plans for many. However, a recent poll from Charles Schwab discovered that while circumstances have changed for many, an optimistic outlook has not.

According to the results of the Charles Schwab 2020 Modern Retirement Survey which surveyed 2,000 people ages 55 to 75 with at least $100,000 in investable assets, more than 80% of current or near retirees say their lifestyle is or will be what they had planned. Other findings include:

| Approximately 85% of Boomers feel their retirement will be better than that of their parents.

| Nearly 80% said their retirement will be better than that of their children.

| 2/3 of retirees say they’d rather spend their money in retirement than leave it to their children.

| 82% of respondents declared that their accounts will get them all or most of the way through their “best life” retirement, which they expect will require $135,100 per year on average.

| Almost 1 in 5 retirees said they or their spouse were financially affected by Covid-19 through a salary cut, reduced hours, being laid off or furloughed or having to retire earlier than they’d planned.

| 1/4 of those surveyed had saved in an emergency fund.

| In general, almost 3 in 10 people are putting less into retirement accounts due to the economic effects of Covid-19.

While the retirement confidence and optimism is a silver lining of the 2020 cloud, it is still more important than ever to review your retirement plans and ensure that your funds match your goals. Rob Williams, a Certified Financial Planner and Vice President of Financial Planning and Retirement Income at Charles Schwab, warns that “Boomers in this study have been saving for retirement and are confident, but for many there’s a potential gap between what they have saved and the retirement they’re envisioning.”

The only thing we love hearing better than good news… is good news that applies to you! We sincerely hope you are feeling confident about what the future holds, and we are encouraging every one of our friends and clients to re-assess where the year has taken you and what you can do about it. Please check in with your certified financial advisor, tax professional, estate attorney and us if you have any questions about your financial future and the role that housing plays in it. 

Resource Used: Boomer investors expect comfortable retirement, but some worry about future market volatility