More than a quarter (26%) of retired investors continue to pay off their mortgages, with a quarter continuing to pay off credit card debt, a new survey shows. National Association of Retirement.
The U.S. retiree population is aging at an accelerated rate and is also facing inflation, which has become an obstacle to balancing the balance of payments. The survey revealed that 22% of older investors are concerned about their ability to pay typical monthly bills.
“As economic stress continues to weigh on retirement investors, the outlook for many in retirement has changed,” said Mike Morrone, vice president of annuity business development at Nationwide. “Now is the time for advisors and financial professionals to communicate with their clients to help them stay calm, flexible and informed in the face of continued economic headwinds, ensuring that the plans they have in place continue to provide them with a secure retirement.”
Financial constraints also cause this group to curtail some of the things they want to do in retirement, including leisure travel. Thirty-nine percent of retired investors surveyed said they were spending less on entertainment, while 34% also said they had cut back on activities such as leisure travel or vacations.
More than one in five retirement investors (22%) are also withdrawing more money from retirement accounts, accelerating the “drawdown” at the end of their careers.
But these investors are also taking further steps to shore up their retirement stability. 63% of investors surveyed have developed some kind of strategy to protect against market risks, up from 54% a year ago.
More retirement investors are also taking the initiative to have estate planning conversations with trusted advisors and loved ones, including long-term care, funeral expenses and the financial details of the estate they plan to name as heirs.
The results show that financial advisors are also more considerate of these plans.
“Advisors are recognizing and acknowledging that investors want to avoid making the wrong moves in retirement,” Moroney added. “They can help clients feel more confident in their retirement plans by understanding their goals and anxieties, and help them protect their savings and plan for future generations by enhancing the value of different retirement solutions and products such as annuities. income.
