We conducted the sixth annual Protected Retirement Income and Planning [PRIP] Study with our partners at the Alliance for Lifetime Income (ALI) this year. The fourth chapter of the 2024 results were just released.
This chapter focuses on the shift from accumulation during working years to decumulation in retirement.
Unfortunately, this new study found that decumulation is leading to anxiety. Nearly half of America’s retirees (46%) say spending their savings creates anxiety and is having an emotional toll on them and nearly a third (32%) are spending money faster than they expected.
Further findings include the following:
- Fewer than a third of respondents (32%) said they have a specific income plan in place for retirement, which is likely contributing to many people’s anxiety
- 41% said they don’t know how to stage withdrawals from their accounts
- Fewer than half (49%) know how to handle required minimum distributions (RMDs) or minimize taxes
Sound retirement income planning strategies could alleviate some of these concerns.
Study Context
PRIP examines the attitudes and behaviors toward retirement savings of Americans ages 61 to 65, known as Peak 65 consumers. It is the only research of its kind that simultaneously surveys both consumers and financial advisors.
Learn more by downloading the report [PDF].
For summaries of previous PRIP chapters, see health concerns in retirement, retirement outlooks among Peak 65 women, annuities as a key retirement solution. Chapter 1 of this year’s study found that half of Peak 65 Zone Americans already retired, chapter 2 compared women vs. men in the Peak 65 Zone, and chapter 3 looked at key gaps in retirement planning conversations.
