Getting the right personal finance outlook can be critical for many Americans who are in the midst of retirement preparation. Many individuals may be finding their happy medium and getting the financial strategy that benefits them the most.
Income for retirement rose for both baby boomers and those in Generation X during 2013, according to a report from the Employee Benefit Research Institute. There are many reasons for the improvement, and some have to do with the types of paths those who want to retire end up taking.
Those in Generation X who have a likelihood of running short on retirement funds dropped 50 percent by having some type of 401(k) plan, the report explained. Meanwhile, many people may take advantage in long-term care insurance or annuities, as this can also help improve their ability to spread their money further in case they get sick in retirement.
“It would appear that while retirement income adequacy depends to a large degree on the household’s relative wage level and future years of eligibility in a defined contribution plan, a great deal of the variability in these values could be mitigated by appropriate risk-management techniques at or near retirement age,” said Jack VanDerhei, research director at EBRI and author of the report.
Older Americans on-track for retirement
Some older individuals are already feeling more confident about their retirement prospects, and this is helping them focus on how they will enjoy their time.
Nearly 60 percent of baby boomers noted that they think it is possible for them to retire by the time they reach 65 years of age, according to a report from Del Webb. This is two years less than the median retirement age in 2010, which was 67.
“For the first time in what may seem like a lifetime, boomers are transitioning to a new stage in their lives that is filled with zest and personal discovery,” said Fred Ehle, vice president of brand marketing for Del Webb. “They are able to re-evaluate their lives and focus on what is most important to them – which tend to be friends, family and a healthy lifestyle. Once they do so, they optimize every available opportunity to live their ‘new’ lives to its fullest extent.”
Approximately 55 percent of this group noted that they will consider a relocation now that they are headed toward retirement and their kids no longer live with them, the report added.