Americans Retiring Early, Then Running Out of Money

The headline is from an article in “The Street”  which discusses why Americans are often confused about retirement.   Genworth, the insurance company, surveyed adults nearing retirement age.  Genworth reports that Americans are “retiring earlier … but underestimating retirement expenses” once they arrive — both the result of “unrealistic” expectations.

The Genworth data reveals that 52{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93} of pre-retirees expect their living expenses to decrease in retirement, but actually, 65{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93} of retirees saw their costs rise in retirement. Genworth says health care costs are the main culprit, along with real estate and “money spent on dependents.”

Only 12{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93} of retirees interviewed by Genworth say they had enough money to meet those higher living expenses.

Put it all together and you have a scenario in which millions of Americans will retire not knowing they lack the necessary funds to survive in retirement — and may not have the financial means to close that money gap in their 60s, 70s and beyond.

The best way to prepare for the financial aspects of retirement is to obtain the services of a financial planner and investment advisor who has experience in guiding people in retirement.  We specialize in this area, are expert in guiding retirees, have literally written the book on this subject, and would be happy to provide the guidance you need.

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