Retirement isn’t exactly as expected for many, with surprises including a younger-than-expected retirement age and higher health care costs, according to the Wells Fargo/Gallup Investor and Retirement Optimism Index.
The average retirement age of those surveyed was 62, significantly below the age of 70 to which many are being encouraged to continue working to maximize savings and their Social Security benefits. 27% of men and 19% of women felt that their retirement age was earlier than they would have hoped.
Many retirees are surprised by the costs they faced in retirement, with health care costs leading the charge. 37% of those surveyed say health care costs have been higher than expected in retirement, 45% say their total health care costs are just what they expected, and only 9% say they have been lower than expected. About one quarter of retired investors say living expenses and taxes have been higher than expected after they retire.
Once retired, many investors still want advice. In the survey, 70% of 401(k) participants would like advice on details such as how to optimize Social Security in retirement. According to the survey, very few people are mapping out their retirement plans, with just 20% of those surveyed saying they have done the detailed calculations to determine how much income they will need in retirement. Nearly half of those surveyed are unsure or have not thought much about how much money they will need in retirement.
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