Many of those who are currently in retirement do not believe they have a large enough nest egg and are aware that they should have saved more on a regular basis. The Transamerica Center for Retirement Studies (TCRS) surveyed more than 2,000 retirees who are U.S. residents age 50 or older, fully or semi-retired and whose longest position of their career was with a for-profit company of five or more people. Of the retirees surveyed, the median retirement age was 71 years old.

Thirty-five percent retired when they planned to and 56% retired sooner than they had planned. Of those who retired before they had intended to, many encountered either employment- or health-related issues. A smaller group (9%) retired later than they wanted due to financial reasons, including requiring more income, not having saved enough or having “anxieties” about where they stood financially. Forty-six percent of retirees think they have a large enough retirement nest egg, while 67% are confident that they will have enough money to be comfortable in retirement.

As for the financial situation of retirees, over one in four describe their finances as having “stayed the same” since starting retirement. Thirty-six percent state that their financial situation has declined, with only 20% indicating that it improved. Given this small number of retirees whose finances are in better shape, it’s no surprise that 59% report spending less money in each year of retirement than they did when they were working.

When it comes to how these retirees saved for retirement, one in three began saving prior to age 40. Thirty-nine percent only started saving when they were in their forties or even older. The study’s authors state, “An alarming 30% of retirees indicate they did not save for retirement.” One-third of retirees have a financial adviser, with the majority consulting their advisers for investment advice during retirement. However, 73% know they should have consistently saved more money for retirement.

Source: “A Precarious Existence: How Today’s Retirees Are Financially Faring in Retirement,” by Catherine Collinson, Patti Rowey and Heidi Cho; Transamerica Center for Retirement Studies, December 2018.

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