The report, Process of Planning and Personal Risk Management, says pre-retirees are more likely than retirees to express concern about inflation, investment and longevity risks. For example, seven in 10 pre-retirees (71%) are very or somewhat concerned about inflation risk, compared with six in 10 retirees (58%). Similarly, six in 10 pre-retirees (62%) and half of retirees (52%) are concerned about interest rate changes impacting their retirement.
Pre-retirees are also more likely than retirees to report being concerned about depleting their savings (58% vs. 47%) and maintaining a reasonable standard of living (56% vs. 45%). Compounding inflation and savings concerns, 39% of pre-retirees and 36% of retirees withdraw money from their savings as needed with no set plan.
Other survey findings include:
- Only 5% of pre-retirees have a planning horizon to or beyond their life expectancy.
- Few individuals look 20 years or more into the future when making important financial decisions (13% for pre-retirees and 7% for retirees).
- Sixty-eight percent of retirees create a plan to manage their money and how to spend it each year so they do not outlive their finances.
- Seventy-three percent of retirees consider allocating their investments and savings to different types of assets. Only 24% of retirees have already purchased or plan to buy a product with guaranteed income for life.
- Ninety percent of pre-retirees have already eliminated or plan to eliminate all of their consumer debt as a means to protect them financially (81% for retirees).