Transamerica Annual Retirement Survey 2020

[scrabbler1]

This is troubling to me.

Most regular posters here seem to grasp the concept of putting your financial plans in writing. We understand that having a plan and committing that plan to writing keeps us centered and our financial lives focused. It is not a difficult task AND it can be changed because it is YOUR plan.

RunningBum beat me to it, but I would broaden the definition of "financial plans in writing" to include one or more spreadsheets. In preparing for my eventual ER back in 2007-08, I had built some spreadsheets which projected income and expenses starting at my expected ER age of 45 through age 65, as those were the most important years (not after age 65, when things would get easier).

I am frequently adjusting my ER plan based on current and short-term conditions. Sometimes, the changes are small, but sometimes they are big, such when I liquidated a stock fund at the end of 2019 which was generating too much income and lousing up the ACA subsidy, in favor of a similar index fund which would generate far less income.

 

[Winemaker]

Don't have a written plan
Don't track spending
Don't have a budget
Don't balance checkbooks
Don't worry either

+2

 

[ShokWaveRider]

Stolen From Robbie added my 2c.

Don't have a written plan
Don't REALLY track spending, not anal about it anyway.
Don't have a budget
Don't balance checkbooks - Don't have any checkbooks
Don't worry either - OK, well just a little.

 

[athena53]

I found it interesting that 41% figured that family and/or friends will take care of them if they need it. Wonder how many of those family members/friends know about that and are on board with it, and how many retirees are counting on the help of a spouse who may predecease them. I also wonder how many of the couples who are just fine on SS alone have considered what happens when one spouse dies and SS is reduced 33% to Survivor Benefits only.

I love your description of these ladies, they sound like my kind of people. I would love to meet them. I wonder what will happen to them when the lady who owns the house dies. Has she made any arrangements for the other 3 ladies to be able to stay there? I also wonder how they have been impacted by Covid--I bet it has not changed their life style much, except for going to museums.

I know I'm obsessing on all the "what could go wrong" factors, but that's how I'm wired! Totally agreed on the question about the owner of the house. The 89-year old Dad of a dear friend moved in with a friend of his and paid rent. Dad's friend (landlord) is even older and recently ended up in the ICU with COVID, brought in by a woman who came in every day to cook and clean for them. Now my friend, who lives in AZ and can't really travel to look in on Dad (who lives in Atlanta) due to his own health issues, is scrambling to find a place for his Dad, who has no money and is failing both physically and mentally.

I like the "Golden Girls" setup for people who can pool resources to live independently but it can fall apart pretty easily.

 

[MrsHaloFIRE]

Agree with Athena about the 41pct who say family friends will care for them. Betting they have not inquired. And they better find some fruends young enough to be if help and old enough to not work or want to travel. Hard ask. "Seeking friends 30 years younger than me in good health, independently wealthy, homebody willing to change my diaper" Phones ringing off the hook, no doubt.

 

[walkinwood]

For couples who had high-paying careers, it is easy to see how SS could be their primary source of income even if they have considerable retirement savings.

Thanks for posting the study. Interesting stuff.

 

[gwix98]

I love your description of these ladies, they sound like my kind of people. I would love to meet them. I wonder what will happen to them when the lady who owns the house dies. Has she made any arrangements for the other 3 ladies to be able to stay there? I also wonder how they have been impacted by Covid--I bet it has not changed their life style much, except for going to museums. We all could get by on much less if we needed to and I bet most of us would be very happy.

These gals sound like they have a nice setup. Sharing expenses in a house and also companionship. I think this kind of arrangement may increase going forward.

 

[2017ish]

I shouldn't be, but still very surprised at only 3% delaying social to 70, and median age being 62[!!].... If law isn't changed to exclude us, 70 is dominating age for DW, and worth it for the possible long tail for me.... But, we clearly aren't the norm for the surveyed group in many ways.

Thanks for this, Gumby. Interesting reading.

 

[harllee]

For couples who had high-paying careers, it is easy to see how SS could be their primary source of income even if they have considerable retirement savings.

Thanks for posting the study. Interesting stuff.

I plan to take SS at age 70 (next year). Between DH and I our SS will be $60,000 per year. We can easily live on that--we spend more than that because of travel, charities, fancy car, gifts, etc. But we could very easily live on our SS and be very happy. Of course we are the exception--most people do not wait to age 70 to take SS and most people don't get nearly as much SS as we will. We are very fortunate.

 

[Hermit]

Sunset, I would like to present you with a well written financial plan:

....

Currently we continue doing what we do or don't do what we shouldn't do:

• Do careful diversified investments.
• Don't invest in Billy Bob's (et al) new business venture.
• Never bet the farm.
• Spend enough to enjoy life, but don't waste money.
• Support relatives to a small degree.
• Track our spending monthly and asset values yearly.

What do you think?

 

[6miths]

Don't have a written plan
Don't track spending
Don't have a budget
Don't balance checkbooks
Don't worry either

+4

But agree that this could be an issue if the money management is concentrated in one person's hands and they become incapacitated. In our case, it is all pretty much cruise control with very basic structure and have a couple trusted and educated children along with a great accountant/tax specialist. Better half has also heard the editorializing about 'money management' 'professionals' for many years.

 

[SeanPizzle]

Sounds like me

 

[swabby01]

Retired in 2018 - pension now along with DW still working (until 2021) cover all expenses plus Grandparent expenses....... That said, I was 63 when I retired and don't intend to touch SS until at least FRA. Haven't taken any of the IRA, 401K or CMA funds yet. Looks like SS will be supplement to offset DW retirement so our quandary is what to do once we hit RMD point and will probably be saving money each year til them. Thinking maybe a vacation property in another state could burn the excess and then become our new HOR if CA keeps on its insatiable "feed me" tax increases

 

[Badger]

Retired so no more 403b to contribute to. We keep the stocks we have but no plan on buying anymore. We live on our SS, small pensions, and dividends. RMD each year goes into a MM account that continues to grow just like the value of our IRAs and stocks. If things get so bad that we need to tap into our retirement savings then the world will have one foot in the toilet.
The only plans I have are written down for me (if I lose my marbles), my wife (if I go first), and grown children (if they need to take care of us) are pretty much stay the course.

No worries.


Cheers!