Its official: Americans are not ready to retire.
According to recent retirement studies from both BlackRock and Merrill Edge, half of American investors realize they will have to delay their retirement dates and reduce their desired lifestyle in retirement because they havent saved enough.
And yet, many investors continue to suffer from an information gap thats preventing them from planning ahead.
Its common for investors to underestimate how much money they will need to cover themselves for their life when retired, said Frank Porcelli, head of BlackRocks U.S. Retail Business, in a statement accompanying the study’s results. Retirement today is not a single life stage and the new reality is that it could cover a 25-year period or longer during which time an individuals needs, goals and risk tolerance are likely to change.
Many investors are lowering their expectations for their retirement lifestyle, according to BlackRocks findings released Thursday. More than four in 10, or 42%, of nonretired investors say they have lowered their expectations for the kind of lifestyle they will have in retirement. Half of investors say they either have pushed their retirement to a later date or are unsure about when they will retire.