On a 10-point scale of how well their retirement lifestyle is aligned with their pre-retirement expectations, retirees gave an average score of 5.7, down from 6.4 in 2022 and 6.8 in 2020. Image: fizkes/Shutterstock.com
By: FEDweek StaffA study by the Employee Benefit Research Institute of retiree finances cites “concerning trends on dampened spending expectations due to lack of sufficient savings, inflationary pressures and rising credit card debt.”
Those trends are all the more concerning, it adds, because the survey for 2024 again found “a high proportion of current retirees retiring earlier than expected due to reasons beyond their control.” Specifically, 58 percent said they had retired earlier than expected, with 38 percent citing a personal health problem or disability, with 23 percent citing issues such as a downsizing, closure or reorganization at their former employer.
On the macro level, it said, on a 10-point scale of how well their retirement lifestyle is aligned with their pre-retirement expectations, retirees gave an average score of 5.7, down from 6.4 in 2022 and 6.8 in 2020. “Similarly, retirees rated their satisfaction with life in retirement an average of 6.9 in 2024, down slightly from 7.0 in 2022 and 7.4 in 2020,” it said.
Contributing reasons included:
* 31 percent said their spending is much or a little more than they can afford, up from 27 and 17 percent in 2022 and 2020;
* 68 percent said they have credit card debt, compared with 40 and 43 percent;
* 59 percent said they have three months of emergency savings, down from 69 percent in 2022; 36 percent they have experienced unexpected spending needs in retirement.
“Given their economic circumstances during retirement, half of the retirees said they saved less than what was needed for retirement. One in three said they saved the right amount and 17% said they saved more than what was needed,” it said.
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