Nearly Half Of Americans 'Aren't Ready To Retire', Study Reveals - Here's Why Making A Plan For Income In Retirement Is Crucial For Your Golden Years

Date

2025-11-03 02:03:57

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Without a well-defined plan for spending in retirement, Americans could be facing unexpected and unnecessary stress.

An Allianz Life Insurance study reveals that only 44% of Americans have a retirement income plan.

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Allianz's Vice President of Consumer Insights, Kelly LaVigne, commented“if you don't know how you will draw from your retirement assets for income, then you aren't ready to retire.”

Having the right retirement strategy for how and when you'll spend your income is key to reducing the decisions you'll need to make once you reach retirement age.

Unfortunately, without a plan, you risk joining the 31% of Americans who are overspending in retirement, according to a report from retirement magazine 401(k)Specialist.

Why it's so important to have a plan

Having a plan really does pay off.

Research from T. Rowe Price found that individuals with a formal financial plan had two to four times more wealth when entering retirement compared to those without one.

With the help of a qualified professional, like those found through FinancialAdvisor you can easily plan when, where, and how you want to retire.

FinancialAdvisor is a free online service that helps you find a financial advisor who can help you create a plan to reach your financial goals. Just answer a few questions and their extensive online database will match you with a few vetted advisors based on your answers.

You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

Even if you're confident in the amount you've saved for your retirement, LaVigne insists“it is critical to understand how those assets will be able to fund your life after you retire.” That's why individuals with higher [net worths should also consider consulting a professional to make the most of their nest egg and the rest of their assets and portfolio.

How to add to your retirement income

Another big concern among the Americans surveyed is how to best take distributions from their retirement savings when they do retire, with 45% revealing they're unsure of the best method.

This question is best answered with the help of a financial advisor, and it will largely depend on the type of accounts that you have.

With most IRA accounts, you will pay taxes on the funds you take out. So, the timing of these withdrawals really matters for the potential income tax you'll incur. However, with a Roth IRA, you are contributing to your account with after-tax income, which means your withdrawals at retirement age won't be taxed.

This is why financial guru Suze Orman wrote that Americans should be putting“every single cent” into a Roth account in her book, "The Ultimate Retirement Guide For 50 Plus".

Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you're curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

No matter if your retirement plan involves investing in gold, or its value in cash, the investment is an opportunity to diversify your portfolio and stabilize your finances.

Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B - start using them today to get rich (and then stay rich)

Make sure your family is secure

Finally, a plan is important because it provides your loved ones with security, too.

For workers, an emergency fund doesn't just safeguard against a job loss. It can also be the ticket to covering surprise expenses without going into debt. And being retired doesn't make you immune from surprises.

For instance, if you're concerned that Medicare might not cover all your health care expenses or that you want a little more financial security in retirement, there are other insurance options you can consider

A life insurance plan can provide an extra layer of support, and a financial buffer, for you and your family.

Ethos aims to provide affordable, straightforward life insurance policies with no medical exams required for most applicants, ensuring peace of mind and financial protection for your family.

No matter what your husband decides, you should both sit down with an estate planning attorney and talk through your options. If your husband has specific wishes, an attorney is ultimately the best person to suggest the right tools for carrying them out.

Ethos also makes it easy to complete a legally valid will online in minutes. Their service helps you document your wishes and create a will that reflects both your values and responsibilities.

You can complete your will online in under 20 minutes, with guided prompts that simplify each step of the process.

Plus, if you sign up for term coverage from Ethos Life Insurance, you can complete a legal will for free.

Enjoying life on a fixed income

Having a suitable retirement plan isn't only important for your financial goals, it's just as critical for your peace of mind.

Of those surveyed by Allianz Life, 48% worried about living too frugally and not enjoying retirement as much as they should. Without a clear set of steps for how you want to prepare for - and live - in retirement, you're subjecting yourself to unnecessary uncertainty. You may be spending more frugally than necessary, or you might not be frugal enough to make those savings last.

Once you have your plan, investing while you spend is another way to double down on savings for the future.

Acorns automates investing and saving to simplify the process of setting aside extra funds.

When you make a purchase on your credit or debit card, they will automatically round up the price to the nearest dollar and place the excess cash into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future.

When you sign up now, you'll get a $20 bonus investment, too.