senior Scoops

Retirees a bit more confident, but with conditions

Every year, the Federal Reserve issues a report that takes stock of how Americans feel about their financial condition. Although there isn’t a huge difference from the previous year, the 2023 report indicates that Americans are feeling slightly less confident about their financial security than they did in 2022. One of the key factors in that lack of confidence is inflation. This is from the report:

Despite the moderating pace of inflation, many adults continued to indicate that higher prices were a challenge in managing their finances.

That being said, 72% of those surveyed reported that they were doing at least “okay” when it came to managing their finances. That is down only 1% from the 2022 number, but down from 78% recorded in 2021. Here is a more detailed look of all Americans:

• 33% Living comfortably
• 39% Doing okay
• 19% Just getting by
• 9% Finding it difficult to get by

Retirees

Now lets look at those in retirement. They are more optimistic, but there are conditions.

I have often preached in my blog, the importance of multiple sources of retirement income. This report bears that position out. Although 80% of retirees feel at least okay with their financial condition. That number falls dramaticly for those who rely entirely on Social Security benefits. Duh! I know that is an obvious conclusion, but it is a point worth mentioning over and over.

• 52% of those who rely entirely on Social Security, say the are doing ok
• 78% who have a company sposored pension or 401K, are ok
• 88% are ok who have dividends, or rental income coming in.
• 95% Pension or401k, Dividends/Rental Income

Only 29% of Americans currently recieve a pension from their former employers. It is an imperative to fully fund available 401K plans, especially if there is a company match.

This final note on the financial condition of retirees from the report:

Outside of designated retirement assets, other assets, such as home equity and savings in a taxable investment account, can also be important sources of financial security in retirement.

One of the founding ideas of this blog was to promote the philosophy that a comfortable retirement is possible with a sub $1M nest egg. I will continue to publish ideas in the form of sustainable side hustles and strategies toward that end.

Here are 2 previous articles that offer actionable stategies for a more prosperous retirement. One is a side-hustle suggestion, the other cost saving measures.

5 Hacks for the Frugal Retiree – senior Scoops

The Ultimate Guide to Dog-Sitting–Tips and Tricks – senior Scoops

What do you think?

How is your financial condition, are you making it in retirement?

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