Do you find yourself regretting the fact that you didn’t start saving for retirement when you first started working? A recent study by TIAA-CREF finds that 52% of employees who are nearing retirement wish they had started putting cash away for their golden years earlier.
TIAA-CREF’s Ready to Retire Survey shows that financial challenges comprise three of the top four primary concerns for those close to retirement. Many pre-retirees are concerned about having enough money to pay for all of their monthly expenses (45%). Others are experiencing anxiety when it comes to managing the impact of healthcare costs (35%) and inflation (32%) on retirement savings.
Key survey findings:
- Respondents say they wish they had made smarter financial decisions earlier in their career, such as saving more of their salary (47%) and investing and saving more aggressively (34%).
- Roughly 45% of survey respondents age 55 to 64 say financial readiness will determine when they retire.
- About 68% of pre-retirees who participated in the survey say they are not ready for the future.
- Many are restructuring their idea of retirement. Approximately 42% of survey respondents age 55 to 64 say they expect to be working part-time. Roughly 39% say they will cut back on entertainment and luxury items.
For more on this topic, see Generation X Unprepared for Healthcare Costs During Retirement.