People’s sense of retirement readiness seems to provide flexibility in terms of whether or not they will continue working to drive additional income once they retire. Thirty-nine percent of people surveyed say they do not plan to work at all in retirement, and 46 percent say they might work part-time even though they expect to have enough money to live without working. Just 10 percent think they will have to work at least part-time to make ends meet.Budget Busting Worries When asked how their confidence level has changed since last year, 23 percent feel more optimistic about being prepared for retirement, while 24 percent are less optimistic, and roughly half (52 percent) haven’t changed their perspective. Survey respondents did express some financial worries when it comes to retirement planning. More than half (53 percent) say their primary concern is incurring unexpected expenses in retirement, such as medical or healthcare costs. “Even with Medicare benefits, a 65-year-old couple could need nearly $400,000 to cover out-of-pocket healthcare costs during retirement, according to research by the Employee Benefit Research Institute*, and it’s widely accepted that those costs could rise significantly in the future,” notes Schwab-Pomerantz. “The bottom line for everyone is that healthcare costs need to be carefully factored into retirement plans.” Regional highlights from the survey include:
- Nearly half (47 percent) of Los Angeles residents surveyed say they don’t plan to work at all in their retirement years, compared to only 30 percent of Washington DC residents.
- More than half (52 percent) of Philadelphia residents say they’re currently working with a professional advisor on their retirement planning, compared to 40 percent of Bostonians.
- Washington, D.C. residents are most likely to relocate in retirement (36 percent), while San Franciscans are least likely to move once they retire (17 percent).
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