More women than men were uncertain about their anticipated retirement spending; 38% said they didn’t know how much they would need, compared with 30% of men.
The survey of 1,011 respondents showed that 22% of Americans think they will need to use more than 10% of their retirement savings each year. Age influenced this, as 33% of those between the ages of 35 to 44 expect to spend the same percentage on a yearly basis once they stop working. A smaller number of retired Americans (15%) believe they will need to withdraw more than 10% of their savings compared with 25% of those who are currently not retired.
In contrast to older generations, younger Americans (18-34 year olds) said they do not believe their retirement will be costly, as 19% said they plan to withdraw one to two percent annually from their retirement savings.
Other key findings from the survey included:
- Forty-four percent of Americans expect to spend less than 10% of their retirement savings each year. This decision was influenced by gender as 50% of men polled indicated the same compared with 37% of women.
- Regionally, respondents differed on their retirement spending outlook. Twelve percent and 11% of Americans in the Northeast and West, respectively, expect to spend more than 20% of their retirement savings on a yearly basis. In contrast, a higher percentage of respondents in the South (49%) and Midwest (46%) expect to withdraw less than 10% of their retirement savings each year.
- Household income significantly influenced retirement spending expectations as 50% of Americans with a household income of more than $100,000 plan to spend less than 10% of their retirement savings each year. Comparatively one-third of those with a household income of $35,000 to $50,000 expect to spend more than 10% annually.