Retiree vs. Pre-retiree Investment Goals

It is often believed that the investment goals of people change when they retire.   That may not be true.  Extended lifetimes make it increasingly likely that people may live decades following retirement.  Combine that with low-interest rates and it’s increasingly common for retirees to continue to invest the same way they did before they retired.

A recent survey by Ignites Retirement Research showed little difference between pre-retirees and retirees in the factors that influenced their investment decisions.

Some additional survey results show that many retirees in the survey (66{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93}) said growing wealth is a crucial or very important financial goal, greater than pre-retirees (51{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93}). And, somewhat strangely, 84{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93} of retirees named saving for retirement as a crucial or very important goal, compared with 70{030251e622a83165372097b752b1e1477acc3e16319689a4bdeb1497eb0fac93} of pre-retirees. The findings suggest that one psychological result of the 2008 crash is a marked reluctance for investors to shift from accumulation to distribution just because they happen to stop working a steady job.

What’s the essential difference between retirees and pre-retirees?  Retirees are forced to live on the benefits and assets they have accumulated over their working lives.  Given their desire to continue to invest their financial assets after retirement and the importance of protecting those assets from excessive risk of loss, it become increasingly important to have high quality, affordable financial help in retirement.  This makes an important case for getting the services of an RIA who can provide the professional, ethical and unbiased guidance that retirees need.