AssetMark has discovered Americans are generally realistic and willing to be flexible when it comes to their retirement expectations with 63% of those on track to retire acknowledging they would also have to give up certain goods and services to make it happen.
The top five goods and services Americans are most willing to give up are:
Coffeehouse Coffee: 50%
Premium Brands: 48%
Concerts/Sporting Events: 44%
Large House/Apartment: 43%
The top five goods and services Americans are least willing to give up are:
Doctor/Preventative Health Visits: 6%
Cell Phones: 10%
Assisting Parents/Older Loved Ones: 12%
TV/Music Electronics/Services: 14%
Americans Factoring Gig Economy into Hybrid Retirement Plans
Overall, confidence in the ability to retire is high. 78% believe they will be able to retire by the ages 65-69, but many acknowledge it will require some sacrifice:
While only a third of survey respondents say they have worked with a financial advisor to create a retirement plan that considers all factors for sound retirement planning, two-thirds of all respondents are aware their retirement savings will be offset by inflation, rising medical costs, and other expenses that increase over time.
To help compensate for this, at least half of Americans are open to joining the gig workforce -- i.e., becoming a rideshare driver, handyman, freelancer, etc. -- as part of a hybrid retirement plan.
(Another quarter may be open to it but aren’t presently sure.)
Furthermore, 63% are willing to move to less expensive locations, including 23% who would consider moving out of the country.
“With the pandemic negatively impacting the retirement plans of so many, it’s no surprise but still heartening to see a broad willingness among Americans to make the sacrifices necessary to retire at a reasonable age,” said AssetMark CEO Natalie Wolfsen.
“But while most people seem to be aware of the many financial realities of leaving the workforce, everyone’s situation is different. Working with an advisor can uncover risk-mitigating strategies and potential sources of income that support an investor’s specific goals to help ensure their retirement is everything they expect it to be.”
For a full report with more survey results, click here.