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The latest survey with Age Wave and Edward Jones, as covered in The Wall Street Journal, says 29 years is the most ideal retirement length. Today many retirees are concerned that inflation and market volatility are impacting their ability to achieve that timeline.
- 63% of retirees say they will have to make some financial course corrections, with only (37%) of retirees describing their finances as fully on track as they'd like.
- Nearly half (41%) of retirees surveyed say they frequently worry about outliving their money, especially with the current stock-market volatility affecting the balances of their 401(k)s, individual retirement accounts, and other brokerage-type retirement plans.
So What Are They Doing?
There are multiple things retirees are doing to prepare for more volatility.
Downsizing their home
The most commonly reported action is retirees are downsizing their homes. With real estate prices up over 15% since last year, many people are deciding this is the time to sell and find something smaller.
Moving to a low cost-of-living area
Many retirees are choosing to move from their higher-cost homes to lower-cost locations. With over 50% of Americans moving in 2021, the trend seems to be attractive to retirees who are not location dependent for work or schools.
Less financial support
Lastly, retirees are cutting back on financial support for their children, non-profits, and churches.
Returning to work
The survey found that 59% of retirees say their ideal retirement involves some form of working. Whether part-time (22%) or full-time (18%), work is still on the table for many. The current labor shortage may allow employers to utilize retirees in a greater capacity due to the many current job openings.
Inflation Affects Everyone
Some economists say inflation is temporary, while others warn this may be the beginning. Either way, inflation makes affording everyday necessities more difficult. 63% are saying they are making changes. Are you one of them?
As a certified credit counselor and syndicated writer at MaxMyMoney, Max has coached over 250 Millennials to help take the stress out of money. When Max is not coaching, you'll find him reading financial books, indoor cycling, or visiting local pawn shops looking for swiss-made watches.