Corebridge Finds Only 29% of Older Workers Plan Retirement Withdrawals
Updated
Updated · CBS New York · Jun 9
Corebridge Finds Only 29% of Older Workers Plan Retirement Withdrawals
3 articles · Updated · CBS New York · Jun 9
Summary
Only 29% of workers age 55 and older have a plan to withdraw retirement savings, according to Corebridge, underscoring a major gap in "decumulation" planning after decades focused on saving.
Just 31% of Americans know the term, and fear appears to drive inaction: 56% said they would regret running out of money before death, while only 6% would regret leaving money behind.
More than 7 in 10 retirees said healthcare costs and inflation make them spend less than they would like, helping explain why some retirees underspend even when assets remain intact.
One-third of retirees still had at least 100% of their initial retirement assets by their mid-80s in an EBRI study, a sign of possible unnecessary underspending.
Nearly half of Corebridge respondents preferred guaranteed lifetime income of $60,000 a year over a $1 million lump sum, reflecting growing interest in pensions-like income streams as younger workers rely more on 401(k)s.
With a third of retirees barely touching their savings, is the fear of outliving money a bigger crisis than not saving enough?
As pensions vanish, is your 401(k) strategy ignoring the biggest financial challenge you will face in retirement?
Could a simple change in how you withdraw from your 401(k) and Roth accounts save you thousands in retirement taxes?
The Retirement Decumulation Crisis: Rising Hardship Withdrawals and the Urgent Need for Better Spending Strategies
Overview
This report highlights the growing "decumulation gap"—the disconnect between building retirement savings and planning how to spend them—which is causing increased financial stress for those nearing or in retirement. Findings show that retirees who create a decumulation plan or a defined spending strategy feel much more confident about managing their finances, while those without such plans have significantly lower confidence. This difference underscores how proactive planning can greatly improve financial certainty in later life, making it a crucial step for anyone preparing for retirement.