The higher the income level, the more likely investors are to expect to live comfortably in retirement. This is based on research conducted by Spectrem in 2013. The surprising finding, however, is that almost 60 percent of those with income less than $100,000 believe they will have sufficient income to live comfortably through retirement.
More than 80 percent of those with incomes between $250,000 and $750,000 felt they had enough to live comfortably during retirement. Only 78 percent of those with incomes over $750,000 felt they had enough, however, their expectations regarding “living comfortably” may be different. Three-quarters or those with incomes between $100,000 and $250,000 are comfortable with the amount of income they will have to live on during retirement. This information was included in Spectrem’s report, Financial Attitudes of Wealthy Investors Based on Income.
The findings in this income based report are supportive of recent findings in 2014 done with individuals planning on retiring in the near future and those who had been retired for at least 5 years. In Spectrem’s Retirement Income Gap Solutions report, it was found that most individuals do not feel there is a gap. The gap may occur, however, if returns on their market based portfolios diminish. The report was fielded when the market was at historical highs and sentiments may differ somewhat based upon the recent market turbulence.