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Many pre-retirees fear running out of money long before they turn 80.

In fact, a new study by HomEquity Bank finds two out of ten pre-retirement respondents admitted they could outlive their savings within five years of leaving work.

That’s because nearly a third (29%) of those younger than age 55 and, more alarming, 35% of those who are already retired have saved less than $50,000.

Read: Majority needs help with retirement portfolios

When people run out of money, says Ed Weinstein, president of The Brondesbury Group, “they [must] turn to the money locked in their home[s] to give them a way to be comfortable. They have to learn to see [their homes] as an economic asset.”

Read: Is a home a nest egg or retirement risk?

The problem, however, is 47% of pre-retired respondents and 56% of those who are retired say staying in their homes is critical to maintaining quality of life.

For more on retired clients, read:

Gifts for new retirees

How much do single clients need in retirement?

U.S. retirement savings crisis worsens

Canadians worry about increased expenses in retirement

Originally published on Advisor.ca

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