Retirement Planning Sucks

Traditional retirement planning not only sucks-it doesn’t work. A new study by Putnam Investments makes this crystal clear. Their survey included 1,726 retirees with an average age of 61. Here are some of their major findings: The average household income was $87,000. 60% still carry a mortgage payment and their home equity is relatively low. They have on average $400,000 of investable assets-of the two groups who are “working retirees” two-thirds of working retired returned to the workforce because they wanted to but the remaining one-third went back out of economic necessity. For those that wanted to go back to work their average investable assest were $550,000 compared to assets of $140,000 for those who had to go back to work-these are scary figures! This group really represents the “old guard” many people with the best of intentions but not a clearly defined strategy. My advice to circumvent this situation is to focus on cash flow from investments and eliminate debt. More thoughts and specific actions to follow in later posts!

2 Responses to “Retirement Planning Sucks”

  1. Howard Wagler says:

    Like you said, you should focus on income from investments. One should also try to keep from ever racking up on credit card and other unnecessary debt. Unnecessary by my definition excludes education and house debt, and sometimes a little car debt.

  2. Steve Mertz says:

    I agree Howard-I’m shocked that more retirees don’t have their house paid off and have so little equity!

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