|Copyright:||Copyright Business Wire 2010|
|Source:||Business Wire, Inc.|
Schwab’s Real Life Retirement Services provides insightful information and online tools for retirement planning
According to the US Census, one baby boomer will reach the traditional retirement age every eight seconds for the next 18 years. While the majority (54 percent) does not expect to delay their planned retirement date despite recent economic challenges, according to Schwab’s 2010 fourth quarter retirement pulse survey, data on demographic trends suggest that retirement itself may be changing as the baby boom generation enters this stage of life, presenting new challenges and opportunities ahead:
Baby Boomto “Senior Boom”: According to the US Census, the group of those aged 65 and older will increase 79 percent between 2010 and 2030.
- Rising healthcare expenses: The gap between expected and actual healthcare costs may take a significant toll on retirement savings. Expected retirement healthcare costs are approximately
$33,000, but actual out-of-pocket health expenses for a retiree living to age 100 are closer to $166,000(source: First Command Financial Behaviors Index, 2009)
- The role of work: Schwab found that 88 percent of those surveyed expect to continue working even after becoming eligible for full retirement benefits, citing “the need for more money” (28 percent) as the leading reason, followed closely by a desire to remain active mentally, physically or socially (25 percent). (source: Schwab 2010 fourth quarter pulse survey)
- Financial help in retirement: Schwab’s survey found 44 percent of Americans on the brink of retirement expect to retire with debt; 21 percent of those in their fifties anticipate needing the financial support of others at some point during their retirement. (source: Schwab 2010 third quarter pulse survey)
- High expectations for
Social Security: According to Schwab’s survey, 84 percent of Americans 65 and older are counting on Social Securityto at least supplement retirement savings, with 30 percent expecting it to be a primary source of income in retirement.</b>(source: Schwab 2010 fourth quarter pulse survey)
“We’ve reached a historic moment this month with the first of a wave of boomers turning 65. We’d like to wish them a happy birthday and welcome them to the next of many transitions in their lives,” said
For More Information
To help the millions of Americans nearing retirement, Schwab’s Real Life Retirement Services provides insightful information and online tools to help answer questions such as:
- Can I afford to retire?
- When should I take
- How can I generate retirement income?
Schwab’s realistic approach to retirement also highlights stories from Americans who have successfully transitioned into retirement. For more information, please visit www.schwab.com/RealLifeRetirement or follow Schwab on Twitter @CharlesSchwab.
About the Charles Schwab Quarterly Retirement Pulse Surveys
The Charles Schwab Quarterly Retirement Pulse Surveys are conducted by
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