Affluent Americans May Be Underestimating Their Needs in Retirement Says New Schwab Survey

Wednesday, March 06, 2013 13:48
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Affluent Americans May Be Underestimating Their Needs in Retirement Says New Schwab Survey

Tags: retirement income | retirement planning

More than eight in 10 investors say they have a retirement plan in place, and 80% say they are confident about their financial readiness for retirement. However, when it comes to estimating how much money they’ll need once they actually retire, respondents say they’ll need on average around $66,000 in income annually, far lower than their current average income that is approximately $115,000.

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“Everyone’s retirement saving and investing plan is going to be unique, but each plan needs to start with a realistic assessment of personal situation and goals,” says Carrie Schwab-Pomerantz, Charles Schwab & Co., Inc. senior vice president, CFP. “In many cases, we tell clients to assume they’ll need roughly the same annual income in retirement as they had beforehand unless they anticipate a significant lifestyle change, and to take into account longevity risk when planning how much money they might need.”

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