Good News: You Will Probably Have Enough Money in Retirement (If You Are Saving for It Now)
Many of us worry about retiring with enough money to live the rest of our lives. However, a new study by researchers from the University of Texas Tech suggests that you are likely to be fine.
The researchers analyzed the retirement savings and habits of 835 retirees between the ages of 65 and 70. They found that participants in the third, fourth, or fifth quintiles of the study, depending on their assets, spent an average of 8% less than they could. Was. Those with a higher level of well-being lost up to 46%.
In other words, most retirees who have at least an average amount set aside for retirement do not spend as much on retirement as they can. This gap could be because they want to leave money to their heirs or fear unexpected medical bills or uncertainty about when they will die.
Of course, you should still calculate how much you need in retirement , exercise caution when saving, and withdraw strategically when you are retired. But maybe this news will give you a little more peace of mind as well.
Retirement Consumption Gap: HRS Data | Social Science Research Network via Consumer Reports