Nearly half of recent retirees feel they estimated their retirement savings accurately, and 28 percent more say they will actually need less than they saved, a new study by Ameriprise Financial, Inc., has found.
Only 24 percent believe they will need more retirement funds than they thought they would need.
The study included interviews with 1,000 Americans age 60 to 73 who have retired within the last five years and have at least $100,000 in investable assets.
The recent retirees interviewed had the following estimates for the total cost of their retirement:
- 41 percent – $1 million
- 32 percent – Between $500,000-$1 million
- 27 percent – Up to $500,000
The first wave of Baby Boomers to retire felt more confident about retiring the more they had prepared for it. About 40 percent consulted a financial adviser, 52 percent consulted an employer plan, and 71 percent used information from Social Security during the planning stages. Many also consulted family and friends.
Before retiring, nearly half (46 percent) felt they would be able to live the lifestyle they wanted in retirement, while 51 percent thought they would be able to downscale certain aspects of their lifestyle, if needed. Most felt secure that they would be able to cover basic needs.
The mindset of Baby Boomers on the verge of retirement one year before the big day was one more of excitement than trepidation:
- Couldn’t wait to retire (25 percent)
- Ready to retire (49 percent)
- Uncertain or unready to retire (21 percent)
- Had not thought about retirement (7 percent)
Most were as happy emotionally as financially. One-third found nothing difficult emotionally about transitioning to retirement life, while 23 percent missed the connection with colleagues at work, and 15 percent had some initial adjustments to getting used to a new routine. One in 10 voiced concern about finding a purpose and passing the time.
But, overall, 87 percent of the retired Baby Boomers surveyed are “very satisfied” with the decision to retire when they did.