Retirement Planning: Study Reveals Up to 43% In Favor of Systematic Withdrawal Plan (SWP)

Retirement planning involves making the necessary preparations to continue to achieve one’s goals and aspirations. This may be in the form of investments, savings, etc.
Recently, Real Research, an online survey platform, conducted a survey to gather public preferences about retirement planning. In particular, the survey aimed at gathering opinions about respondents’ ideal retirement ages, post-retirement incomes, payout plans, and more. 

To begin with, the survey revealed that the legal retirement age in respondents’ country of residence is below 60 (39.7%), while other respondents report retirement ages of 60-62 (27%), 62-64 (15.51%), and 64-70 (10.01%). 

Correspondingly, 34.08% plan to retire below the age of 50, while others plan to do so between 55-60 years old (17.51%), 60-65 years old (15.34%), 50-55 years old (15.24%), and 65-70 years old (8.42%). Notably, while the majority of the legal retirement age is below 60 years, most plan to retire below 50 years old. When asked about the same, 23.49% agreed, stating that the retirement age should be lowered. 28.39%, however, feel it should be raised. 

Retirement Planning 

Retirement planning is essential as it helps individuals to prepare for their future financial needs, such as healthcare costs, and living expenses after they stop working. In fact, 61.08% would place retirement planning as the highest priority. 

Accordingly, the survey asked what respondents’ financial retirement goals were–35.12% say financial stability and independence, 18.64% say having adequate savings for healthcare expenses, and 11.42% say they would want to live their desired lifestyle. These findings further stress the importance of financial preparedness post-retirement. 

Retirement Payout Plan 

Retirement payout plans, also known as retirement income plans, are financial strategies designed to provide retirees with a steady stream of income during their retirement years. There are several types of retirement plans; 42.58% of survey respondents would ideally prefer a Systematic Withdrawal Plan (SWP), whereas 27.05% prefer Life Annuity with Period Certain, 13.15% chose Joint and Survivor Annuity, and 6.96% opted for Self-directed payouts. 

41.33% also said they reached out to financial advisors for retirement planning, while 22.27% plan to do so in the future, highlighting the importance of seeking professional advice and guidance to ensure that individuals make informed decisions and take the necessary steps to achieve their retirement goals.  

Alternatives to Post-Retirement Incomes 

Traditionally, retirees would opt for payout plans and options to support their retirement period. Nowadays retirees are exploring alternative sources of income during their retirement. As per the survey, 18.71% would consider investing in various ventures, 14.09% would choose social security, 12.25% would start a home-based business, and 12.11% would take up some part-time work. Others would rent out property as an alternative source of income (11%), and receive dividends on stocks (10.29%).  

Overall as the survey highlights the importance of retirement planning, it also raises questions about the future of retirement and the amount of uncertainty there is. The survey also reveals that financial stability and independence are the primary financial retirement goals for most respondents, followed by having adequate savings for healthcare expenses and living their desired lifestyle. With changing economic conditions and shifting demographics, however, it remains to be seen how retirement planning will evolve in the years to come. With new work-balance measures and emerging alternatives, retirement trends are likely to shift. 

As such, whether new retirement plans emerge, or if retirement ages fluctuate, only time will tell, but one thing is certain – it’s never too early to start planning for one’s retirement.