The headlines seem to blare at us every day: Americans are not financially prepared for retirement. While it is true that many are not, there is a group of savers identified in a recent PNC survey who know exactly what they want and how they want to get there.
The PNC Perspectives of Retirement survey identified key priorities of those in the workforce who are planning for general life goals in retirement.
We understand that emotions often shape decision-making about major purchases, such as buying a new car, a first home, or many other products. Similarly, we believe – and our survey confirms – emotions also are in play when people think about retirement. So we know it is critical that people set goals and track progress against those goals in order to balance the emotions involved with planning for retirement.
Most of those survey respondents we consider to be “successful savers” feel they are taking the steps they need to make their goals achievable. In fact, our survey shows that 77 percent actively monitor their retirement plans, while 72 percent are confident they will achieve their life goals. Those are good signs and good steps.
The survey also tells us that among respondents currently participating in a retirement plan, 70 percent are saving with investment firms, banks and brokerage firms, or in mutual funds; while 53 percent are investing in employer-sponsored retirement plans. In addition, almost half (45 percent) have been saving for at least 20 years. Participation is the key.
There are other practical steps people can take as they think ahead to the day they walk away from the working world. Consider what expenses you can pay down today that you will not need to worry about later. Many successful savers in our survey are thinking that way. Almost a third (31 percent) are attempting to pay off their mortgage, and 10 percent are paying down credit card debt.
Our survey also helped us understand how those who aren’t yet retired believe they will spend their money in retirement. These individuals expect basic living expenses such as food and housing to account for 40 percent of their spending in retirement. They also anticipate that 19 percent of their spending will be dedicated to travel, and that healthcare expenses will comprise 18 percent of their spending.
The survey also found that sentiment plays a role in thinking about life goals.
When asked about their retirement goals, three quarters (77 percent) of those not yet retired listed having peace of mind and living comfortably as most important, 70 percent wanted to travel and 56 percent envisioned spending more time with family.
The fact is, emotions can influence retirement decisions. But to become a successful saver you must set goals, make a plan and monitor that plan with an advisor for greater confidence as you look toward the golden years.
How you prioritize spending during retirement is a personal choice that depends on your own situation. What remains consistent, however, is the value of setting goals and creating a plan to achieve those goals so you can successfully save for the retirement of your dreams.
Rich Ramassini, CFP® is Director of Strategy and Sales Performance for PNC Investments.
Learn more about PNC’s retirement planning services »
47% list financial stability and security as a top goal
72% are confident their life goals are achieveable
70% invest savings in investment firms, banks, brokerage or mutual funds
77% regularly monitor their retirement plan against their goals
20% Financial Security/Get Out of Debt
77% Live Comfortably
56% Spend More Time with Family
How those not retired expect to spend retirement funds*
40% Basic Living Expenses (e.g. food, housing)
Goals for Retirement:
PNC Point of View
Real People. Real Perspective. Real Insights. »
The material presented in this article is of a general nature and does not constitute the provision by PNC of investment, legal, tax, or accounting advice to any person, or a recommendation to buy or sell any security or adopt any investment strategy. Opinions expressed herein are subject to change without notice. The information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy. You should seek the advice of an investment professional to tailor a financial plan to your particular needs. For more information, please contact PNC at 1-888-762-6226.
The PNC Financial Services Group, Inc. (“PNC”) uses the marketing names PNC Wealth Management® and Hawthorn, PNC Family Wealth® to provide investment, wealth management, and fiduciary services through its subsidiary, PNC Bank, National Association (“PNC Bank”), which is a Member FDIC, and to provide specific fiduciary and agency services through its subsidiary, PNC Delaware Trust Company or PNC Ohio Trust Company. PNC also uses the marketing names PNC Institutional Asset Management®, PNC Retirement Solutions®, Vested Interest®, and PNC Institutional Advisory Solutions® for the various discretionary and non-discretionary institutional investment activities conducted through PNC Bank and through PNC’s subsidiary PNC Capital Advisors, LLC, a registered investment adviser (“PNC Capital Advisors”). Standalone custody, escrow, and directed trustee services; FDIC-insured banking products and services; and lending of funds are also provided through PNC Bank. Securities products, brokerage services, and managed account advisory services are offered by PNC Investments LLC, a registered broker-dealer and a registered investment adviser and member of FINRA and SIPC. Insurance products may be provided through PNC Insurance Services, LLC, a licensed insurance agency affiliate of PNC, or through licensed insurance agencies that are not affiliated with PNC; in either case a licensed insurance affiliate may receive compensation if you choose to purchase insurance through these programs. A decision to purchase insurance will not affect the cost or availability of other products or services from PNC or its affiliates. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC does not provide services in any jurisdiction in which it is not authorized to conduct business. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”). Investment management and related products and services provided to a “municipal entity” or “obligated person” regarding “proceeds of municipal securities” (as such terms are defined in the Act) will be provided by PNC Capital Advisors.
“PNC Wealth Management,” “Hawthorn, PNC Family Wealth,” “Vested Interest,” “PNC Institutional Asset Management,” “PNC Retirement Solutions,” and “PNC Institutional Advisory Solutions” are registered service marks of The PNC Financial Services Group, Inc.
Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value.
Insurance: Not FDIC Insured. No Bank or Federal Government Guarantee. Not a Deposit. May Lose Value.
These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions.
This site may provide reference to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot be held responsible for the information, products or services obtained on such sites and will not be liable for any damages arising from your access to such sites. The content, accuracy, opinions expressed and links provided by these resources are not investigated, verified, monitored or endorsed by PNC.