55-year-old US citizen ‘seriously underprepared’ for departure: survey

According to a recent study from Prudential, American citizens who have been traveling for nearly 10 years are “severely underprepared” before reaching departure week.

The study found that 67% of 55-year-olds surveyed said they feared they would be unable to save their savings, compared with 59% of 65-year-olds and 52% of 75-year-olds. Let it be done. By that time, just a decade before departure, 55-year-old U.S. citizens had average departure financial savings of no more than $50,000, the report noted.

Those constituents may be dominated by a stand of “silver squatters” who are forced to depend on the society for housing and financial support.

The study showed that 24% of 55-year-olds surveyed said they were expecting society to support the departure, double the percentage of 65- and 75-year-olds who said the same. However, almost a portion of people aged 55 have not spoken to society about their desire.

“Silver squatters” is a term coined by society for those who are hoping to move in with their adult children, and their plans may possibly surprise millennials and Gen Z.

“You don’t necessarily think about the generation that is supporting their parents and their kids and then helping them,” said Rob Falzon, Prudential Monetary Vice President of Senior Personal Finance in an interview with CNBC. Need.” Correspondent, Sharon Apperson.

The 2024 Pulse of the American Retiree Survey was conducted by Brunswick staff from April 26 to May 2, 2024 among a nationwide sample of 905 Americans.

The study concluded that amid the widespread loss of planned benefit pension plans that supported prior generations, 55-year-olds are nearly twice as likely as 65- and 75-year-olds to say they “do” We do. “Do-it-yourself” employer-sponsored plans such as 401(k) plans to donate to their departure.

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“If you’re asking them right now how much financial support they’ll need, they’ll be looking at their kids on one side, and then they’ll be looking at their parents on the other side,” Simon said. Blanchard, a Labor School master of marketing at Georgetown College’s McDonough College of Trade, who has researched financial well-being. “It seems very difficult.”

It’s noteworthy for society to keep negative emotions on top, so they don’t go over their budget limits, say “you only live once” or try a dangerous get-rich-quick scheme, said Blanchard. ,

Experts say there are some steps pre-retirees can take now, both financial and emotional, that can help them prepare.

Letting people in the community know about your desires and expectations is a great playground to start with.

“This doesn’t mean telling them ‘I’m going to move in with you’ or ‘I’m expecting you to supplement me financially,'” says Lindsey Bryan, a financial therapist based in Ann Arbor, Michigan. Podwin said.

It’s much better to start the conversation with something like, “‘I’m approaching retirement age, we need to have a serious conversation about what this will be like for me and how it might impact us together. Is,'” Bryan-Podvin defined.

Bryan-Podvin said that this way, adult children can also have a chance to have meaningful conversations.

She says it’s a good idea to streamline conversations with all siblings in the same life to avoid indecision.

For those who are pre-retired and their children are still at home, experts recommend that you should prioritize your departure financial savings rather than paying for your children’s school education.

“Your child has the gift of time,” Bryan-Podwin said. While the parent may experience job loss, broken status, or alternative factors that may force them to resign earlier than planned.,

Additionally, fantasize about what your departure years will look like.

“I think for so long, the default has been to buy a house in the old place and hope everything works out,” Bryan-Podvin noted.

She takes issue with emerging new trends, such as having roommates, a development known as ‘boomates’, co-operative living.

Bryan-Podvin also notes that parents living with adult children can benefit from providing financial and emotional support, in addition to receiving it.

“Deal with the stigma of ‘This is what I believed departure would look like.'” “It’s not all doom and gloom,” says Brian-Podvin, founder of Mind Money Balance. There are new techniques for thinking about departure and aging that have traditionally been broadly propagated to us.”