February 2008
What you can do
Obviously none of us can start saving in our 30s if our 30s are behind us. But there are some changes many of us can still
make, drawing on the lessons of this survey.
Don't invest too cautiously or wildly. A solid majority—57 percent—of the retired respondents characterized themselves as moderate risk-takers. That's also borne out in their choice of savings and investment vehicles, as previously listed. For most people that means not avoiding solid stocks and stock funds on the one hand or chasing after speculative, get-rich-quick schemes on the other.
Save even more if you can. The table on How to max out your retirement plans shows the maximums for typical retirement plans.
Plan your transition. While 74 percent of the retirees immediately stopped working once they retired, about one in four told us they had continued to work reduced hours in their field, had worked part-time elsewhere, or had gone into business for themselves. There was no correlation between overall satisfaction and how people had made the transition, so whether you leap into retirement headfirst or ease into it one toe at a time is a matter of preference. That decision is likely to depend on your financial needs and what other dreams you have for your time.
The retirees we surveyed cited such motivations as hobbies, travel, and spending more time with their spouses or companions for bidding the workforce goodbye. Postponing retirement has a long list of financial advantages (see 12 money mistakes that could cost you $1,000,000). But as our retired survey respondents told us, a well-planned retirement has a lot going for it, too.
Don't invest too cautiously or wildly. A solid majority—57 percent—of the retired respondents characterized themselves as moderate risk-takers. That's also borne out in their choice of savings and investment vehicles, as previously listed. For most people that means not avoiding solid stocks and stock funds on the one hand or chasing after speculative, get-rich-quick schemes on the other.
Save even more if you can. The table on How to max out your retirement plans shows the maximums for typical retirement plans.
Plan your transition. While 74 percent of the retirees immediately stopped working once they retired, about one in four told us they had continued to work reduced hours in their field, had worked part-time elsewhere, or had gone into business for themselves. There was no correlation between overall satisfaction and how people had made the transition, so whether you leap into retirement headfirst or ease into it one toe at a time is a matter of preference. That decision is likely to depend on your financial needs and what other dreams you have for your time.
The retirees we surveyed cited such motivations as hobbies, travel, and spending more time with their spouses or companions for bidding the workforce goodbye. Postponing retirement has a long list of financial advantages (see 12 money mistakes that could cost you $1,000,000). But as our retired survey respondents told us, a well-planned retirement has a lot going for it, too.
