A recent survey finds that affluent Americans underestimate how well prepared they’re for retirement. Some 80% say they have a plan in place. But when it comes to estimating how much money they’ll need once they actually retire, respondents say they’ll need on average around $66,000 in income annually, far lower than their current average income of about $115,000.
How reasonable is that? Not very. Going to the office or shop doesn’t take $$49,000 per year so retiring doesn’t reduce the cost of living by that much.
The affluent also expect to work past age 65 and expect to live off their retirement assets for an average of 21 years.
One other un-surprising statistic is that Washington, D.C., residents are most likely to relocate in retirement (36%), while San Franciscans are least likely to move once they retire (17%).