Almost half of Americans worry about being too frugal in retirement, and many say they have no plans to tap into their retirement savings.
Allianz Life’s 2024 Annual Retirement Survey found that 44% of Americans are currently planning for their retirement income. As they approach retirement in the next few years, 67% of baby boomers say they are more likely than Gen Xers (30%) and Millennials (33%) to say they have a retirement income plan in place.
Kelly Lavigne, vice president of consumer insights at Allianz Life, said that while most retirement preparations focus on accumulation, how those assets fund participants’ retirement lifestyles. He added that understanding what to offer is equally important.
“Without a solid strategy, the ongoing process of deciding when to withdraw how much money from which accounts can be daunting,” Lavigne said. “A retirement income strategy can help you reduce the number of decisions you have to make on an ongoing basis. One way to reduce the number of decisions you have to make about your retirement income is to Incorporate a guaranteed pension into your portfolio.
The biggest risk to retirement income
Respondents to the Allianz Life survey also revealed some concerns about their retirement income. The top risks include increasing daily expenses (42%), outliving your money (35%), medical costs (32%), stock market decline (31%), and running out of money from overspending (30%). %) etc.
Financial professionals are best suited to help participants learn how to receive distributions of their retirement savings. According to the survey, 45% are concerned about the best way to allocate their retirement savings to their retirement income.
“When thinking about how to generate retirement income from assets, you need to incorporate risk mitigation strategies to help address concerns such as lack of funds, inflation, taxes, and rising health care costs,” Lavigne said. Ta. “That strategy may include adding a stable, reliable, and possibly increasing source of income. Financial professionals effectively turn retirement assets into income that lasts a lifetime. It will help you strategize.”
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Women at the ‘peak age of 65’ face the risk of retirement
Amanda Umpierrez is the editor-in-chief of 401(k) Specialist magazine. She is a financial services reporter with over 6 years of experience and has a passion for telling stories and reporting news. Amanda earned a degree in Journalism, Government, and Politics from St. John’s University. She is originally from Queens, New York, but currently lives in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama shows.
