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Retirement can mean different things to different people, and those who are champs at saving are feeling confident about meeting their retirement goals, according to the new PNC Perspectives of Retirement Survey. These “successful savers,” as they are called in the study, are not looking to leave their wealth behind, instead they want to use it to enjoy their post-work life, feel secure financially, and have some peace of mind.
What are their top goals? For three-quarters of those who are actively planning for their retirement living comfortably was tops on their goal list. Traveling is important too, with 70% of people looking to hit the road, while 56% want to spend more time with their family. Can they make their goals? The answer was yes for 72% of people who believe they are on track to make their goals a reality.
All these goals have emotions in common, with the study finding that feelings do matter when it comes to personal finance and retirement.
"We understand that consumer decision-making about significant purchases or investments, such as buying a new car, a first home or many other products is heavily influenced by emotion.
Similarly, we believe emotions are in play when people think about retirement," said Rich Ramassini, CFP director of strategy for PNC Investments.
"Our survey results reinforce the importance of setting goals and monitoring plans to balance those emotions," he said.
Concrete steps pave the way
When it comes to meeting their goals most “successful savers” believe that they are taking the right steps to have the retirement they want, with 70% putting their money with investment firms, banks and brokerage firms, as well as in mutual funds. But they do not simply let it all ride--77% review their strategies regularly.
On the other hand, 53% use employer-sponsored retirement plans to do their investing and 45% have been socking away money for at least two decades.
You can't take it with you
While people care about their kids and grandchildren's well-being, those in the 65-75 year age range are not planning on leaving all of their money behind. For 86% retiring and living comfortability is a top concern.
What do those folks who are still working expect their retirement to look like financially? They believe they will be spending 40% on daily expenses, while 19% will go for travel, and 18% will be used to pay for health care.
When preparing for retirement 38% are not paying down expenses before their retirement date, while 31% are trying to pay their mortgage off, and 10% are lowering their credit card debt.
The Perspectives of Retirement Survey was conducted between August 15 and 20 online via the PNC Bank retail footprint.