Many Americans Plan Retirement Spending Cutbacks

Thirty-seven percent of polled working Americans predicted the recession would force them to constrict their retirement spending.

A study by Charles Schwab found that 44 million women versus 38 million men are planning to be more mindful of their retirement spending than they were before the current unstable economy. Also, on average, men have secured more funds for their golden years than women ($247,000 versus $180,000).

Findings also show a consistent lack of savings among pre-retirees. The average respondent has saved $219,000, which is nearly $1.8 million less than most commonly believe they will need to retire comfortably, Schwab said.

The poll also picked up significant indications of the growing phased retirement trend, with 35% of workers planning to delay their retirement milestone. Furthermore, almost one in five (17%) retired Americans are considering returning to work at least part-time due to the economy.

Meanwhile, according to Schawb, some 44% of retirees said they financially support a family member; specifically, 53% support children and 37% support grandchildren. In addition, 12% of those rendering family members financial aid said they contributed cash to help their parents’ finances. 

“Whether it’s their children, grandchildren, or their own parents, more and more retirees are finding themselves supporting family members and, simultaneously, witnessing portions of their hard-earned savings disappear,” said Mark Jamison, vice president at Charles Schwab. “This is just the sort of retirement reality that we really encourage clients to prepare for—the unexpected.”