Of Americans aged 50 and over who are still working, 31% haven’t even prepared a retirement budget. Of that same group 73% prepare to delay retirement according to a survey performed by the NHP Foundation.
Many of the people in this group, encompassing many Baby Boomers but also some older Gen-Xers, are wishful thinking. Lee Barney writes for Plan Adviser:
Thirty-one percent haven’t prepared a retirement budget. Among those that have tried to figure out a retirement budget, 62% say that Social Security will comprise half or more of their monthly income. Sixty-five percent have not budgeted for unforeseen health-related expenses. Among those who have no retirement budget and plan on Social Security to provide half or more of their retirement income, 72% said they haven’t accounted for unforeseen health-related expenses.
There is a disconnect between what kind of lifestyle Boomers expect to lead in retirement and how poorly they are preparing for retirement, NHP says. Seventy percent said they are at least confident they will experience the retirement they aspire to, and among the 73% who are planning to delay retirement, 63% are at least somewhat confident in the retirement lifestyle they will be able to enjoy.
“There is a disconnect between Baby Boomers’ current financial status and where they perceive themselves in retirement,” says Richard Burns, president and CEO of The NHP Foundation. “This wishful thinking carries potential consequences that will likely have a large impact throughout all areas of the economy.”
Yesterday I warned you to save as much as you can. Today I’m telling you to plan as much as you can. If you are approaching the age of retirement, no benefit comes from avoiding planning. If you are having trouble, seek help from a professional or someone you can trust.
As I wrote yesterday, many who think they will be able to work through their retirement years can’t actually do so. If those people are caught without a plan, and without a job, what happens then? Nothing good. Get saving, get planning. Don’t let inertia hold you back.
