Retirees Keeping an Eye on Their Drawdown
A new survey finds that current retirees are keeping a careful eye on their spending — and feel that they can sustain that approach throughout retirement.
Four in 10 retired investors (42%) say they are carefully spending down their retirement savings so it lasts as long as they need it, and nearly as many (38%) say they are trying to keep their nest egg intact but living off the interest as well as Social Security. Three-quarters of retirees (76%) are confident they can maintain their chosen approach throughout their retirement.
As for adding to those savings, well just 16% of retirees claim to be in a position to increase what they have saved for retirement, according to the Wells Fargo/Gallup survey
Half of investors (52%) say stock market volatility, rather than continued low interest rates (38%), is the greater threat to their portfolio over the long-term. Non-retirees are especially likely to say stock market volatility is the greater source of concern (57%), versus 34% who are more concerned about low rates. On the other hand, 47% of retirees feel continued low interest rates are a greater problem, versus 41% of retirees who fear market volatility over low rates.
When investors were asked to choose whether low interest rates or high interest rates are better for their own financial situation today, 63% of all surveyed say they prefer low interest rates, and this surges to 71% of non-retirees.
However, this is not the case for retirees, of whom (just?) 41% said they prefer low rates. A third of all investors said they prefer high interest rates.