PNC Financial Services Group Inc. on Thursday released a new survey on the habits and expectations of those who are well on their way to meeting their retirement savings goals, folks with $50,000 or even $100,000-plus stashed away beyond their workplace 401k.
For many working Americans, having that much money put away may seem out of reach.
But Chuck Grimm, a relationship strategist in PNC’s Wealth Management Group, said even if you’re not currently in what the bank calls the successful saver demographic, the survey can be a useful road map for how to get there.
“It’s never too late,” he said. “If anybody that reads this that says I don’t know if I’m in that situation or I’m not in that situation, the first step is to do something about it. Analyze where you’re at and where you want to be.”
PNC Financial Services released a survey reflecting the saving habits and expectations of those who are on their way to meeting their retirement goals.
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The biggest takeaways from the survey are that those who have saved at least $50,000 by age 44 or at least $100,000 by age 45 are that they’re regularly checking in on their savings and that they’re actively investing.
PNC said 70 percent are investing their money in investment firms, banks, brokerage or mutual funds, while 77 percent regularly compare their retirement plan against their goals.
“I think it’s reassuring that people are taking more ownership of their retirement and their own financial situations,” Mr. Grimm said.
Interestingly, those who are doing well saving for retirement don’t seem to have extravagant goals.
Nearly 80 percent said their top goal was living comfortably, while 56 percent said spending more time with family was tops on their list. Seventy percent said traveling was their main goal.
“We understand that consumer decision-making about significant purchases or investments, such as buying a new car, a first home or many other products is heavily influenced by emotion. Similarly, we believe emotions are in play when people think about retirement,” Rich Ramassini, PNC Investment’s director of strategy said in a statement. “Our survey results reinforce the importance of setting goals and monitoring plans to balance those emotions.”
Among those still working, PNC found on average they expect to spend 40 percent of their retirement income on basic expenses, 19 percent traveling, and 18 percent on health care.
One other takeaway? They’re not necessarily planning to leave an inheritance. PNC said 83 percent of those aged 65 to 75 intend to set aside just enough money for themselves to have peace of mind and live comfortably in retirement.
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