“Retirees Still Have 80% of Savings After Nearly Two Decades,” by Lee Barney, PlanAdvisor
“Research conducted by the BlackRock Retirement Institute and the Employee Benefit Research Institute (EBRI) found that after nearly two decades of being retired, the average retiree still has 80% of their nest egg intact. The researchers say this finding challenges long-held fears about retirees spending down their savings too fast. They also discovered that more than one-third of retirees continue to grow their assets late into life, ‘leaving considerable potential consumption on the table.’ And for all of the talk about long-term care insurance, the researchers found that burdensome late in life out-of-pocket medical expenses are faced by only a small portion of retirees.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
These people are financial advisors? Hmmm. Don’t buy LTCI because you’ll still have most of your nest egg at 85? That’s precisely when LTC costs spike if you have them. High LTC costs only hit a small portion of retirees? That’s why insurance works. If high costs hit most people, saving would be the only way to plan. Financial journalism like this is part of the reason we’re in such a mess.