A recent LIMRA study revealed that only one in four pre-retirees (aged 55-70 still in the workforce) claim that they feel “very prepared” for retirement. This rate is five percentage points lower than what was reported in a similar 2010 survey. In addition, a majority of these pre-retirees say that they will need to withdraw nine percent of their assets each year to cover basic living and discretionary expenses. Given the lackluster economy and low interest rates, this high withdrawal rate will put many at risk of going over the personal fiscal cliff… running out of money during retirement.
Fortunately, LIMRA’s study also reveals that pre-retirees who work with a financial counselor are twice as likely to rate themselves as “very prepared” compared to those who do not (39% vs. 20%). Given these findings, please be sure to reach out to professional help. Further, make sure to seek out specialists in your field of interest.