Surprise, surprise. Financial advisors want people to work longer and save more and I am sure it has nothing to do with them making a living off of other people's money.Scottrade recently polled 226 registered investment advisers on the topic and found that 71% don't believe $1 million is enough for the average American family. Most said families need to save double, or more than triple, the amount.
As it turns out, a retirement income equal to 70-80% of my pre-retirement income would allow me to retire like a prince. I wouldn't even know what to do with all that money. But I am sure that Bill Smith would have a few suggestions to help me spend it... An annuity perhaps?Bill Smith, president of Ohio-based Great Lakes Retirement Group, is among the advisers who took part in the survey. As he sees it, too many people rely on online retirement calculators. Much of that guidance uses a target based on making do with 70% to 80% of pre-retirement income.
"I've never been a big fan of planning to earn less in retirement than you are making now," he says. "I'd like to see an individual continue making the same amount of retirement as when he was working. Who wants to set themselves up in retirement to make less?"
Call me a cynic.