About 77% of retirees between the ages of 62 and 75 plan to spend down at least some of their retirement assets. The top reasons cited include lifestyle, medical expenses and health insurance, housing expenses, and discretionary spending. The remaining 23% intend to maintain or grow their assets. Why would retirees not want to spend down the assets they’ve worked so hard to save? Here are the reasons they gave.
36.1% – Percentage of retirees who say they saved about the right amount for their retirement while they were working. By contrast, 45.6% saved less than they needed and only 18.3% saved more than they needed.
Source: Employee Benefit Research Institute, 2021
Source: Employee Benefit Research Institute, 2021 (multiple responses allowed)
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