- In This Article
- Overview
- Take control where you can
- Planning ahead
- How much to withdraw when funds decline
- How much will you get from Social Security?
- Where to stash your cash cushion
- Retirees
- Keeping the nest intact
- What you can do
- Pre-retired
- Work longer, keep saving
- What you can do
- Younger workers
- Follow the rules, keep the faith
- What you can do
- View all product nest egg
Survey: The rewards—and risks—of planning ahead
People who had planned ahead were more satisfied with their retirement prospects, even in the current market tumult, our survey showed. Here are some of our findings:
Planning took many forms
Among pre-retirees, 90 percent planned in one or more of these ways: read books or articles, talked with friends or relatives, consulted a financial planner, used software or online calculators, or took a course. The more methods people used, the more satisfied they were.
Using a financial pro gave no edge
Unlike our 2007 survey, clients of financial planners said this year that they were no more satisfied with their retirement planning than those who'd educated themselves. Both groups said they lost money at about the same rate. Those with financial planners had a net worth that was about $230,000 greater than those who did their own planning, though we don't know whether they were richer to begin with.
Those who'd planned took more risks
Retirement-planning strategies encourage investors to diversify beyond safe vehicles such as bonds and CDs. Our respondents who had planned were less conservative, in general, than those who hadn't. Before the meltdown, that approach benefited them, according to our 2007 survey. But it proved punishing during the unusually severe market downturn of recent months. So pre-retirees who had done more planning reported worse losses, on average, than those who hadn't planned.
Planners put off retirement
Forty-three percent of respondents who had done four or more planning activities said they would now delay retirement for a year, compared with 28 percent of those who had done nothing. Greater losses might have forced the decision.
About our survey
The Consumer Reports National Research Center polled more than 19,000 of our online subscribers on Nov. 6, 2008. The sample is representative of our online subscribers ages 55 to 75, including retirees, pre-retirees, and partly retired subscribers. In general, our subscribers tend to be older and more educated, and have a higher net worth, than the general population.
