Dallas’ New Retirement: Not Retiring
Merrill Edge® Report Questions Whether or Not Retirement Is Near Extinction, Explores Residents’ Ideas Toward Retirement Savings
The majority (78 percent) of today’s Dallas area labor force expects they will continue to work during retirement, whether for income, to keep busy or pursue a passion. This is a stark contrast to the 60 percent of area retirees, who are not currently working or never have during their golden years.
The latest Merrill Edge® Report – a biannual survey of 1,000 mass affluent Americans1, which oversampled 300 Dallas residents between September 24 and October 5, 2016 – reveals a twist in how today’s younger generations will plan and save for their later years. Seventeen percent of area respondents believe they need to take on a side job to reach their retirement goals.
“The traditional sense of retirement feels out of reach for many Dallas residents, as short-term factors impede long-term savings plans,” said Ryan Deany, regional sales manager of Merrill Edge. “If Dallas residents plan to have a traditional retirement, it’s imperative they start to cut back on spending, while saving and investing as much as they can today to combat the growing sense of uncertainty.”
Growing uncertainty and insecurity around savings
Compared to the national findings, Dallas residents are less confident in articulating their “magic number” – the amount of money they need to live their desired retirement and those who can, are underestimating the amount.
When asked what their magic number for retirement is, 38 percent don’t anticipate needing more than $1 million. Compared to the national average, Dallas residents are less sure of what they’ll need; 26 percent said they simply “don’t know” their magic number, compared to 19 percent of the national average who said the same. Two-thirds of today’s Dallas-area retirees said they did not have a number in mind before they retired.
What’s more, 21 percent of respondents cite they need to win the lottery in order to reach their financial goals in retirement.
Increasing self-reliance with investment decisions
Despite this uncertainty, a majority of Dallas residents still prefer to rely on themselves for their investment approach (58 percent), and 27 percent believe they need to hire a financial advisor in order to live the retirement they want.
When asked why they are saving for retirement, many area residents cite to afford daily life (68 percent) and take care of family (40 percent).
1 Merrill Edge Survey Methodology
Braun Research, Inc. conducted a nationally representative telephone survey on behalf of Merrill Edge. The survey was conducted from September 24, 2016 through October 5, 2016, and consisted of 1,045 mass affluent respondents throughout the U.S., defined as individuals with investable assets (value of all cash, savings, mutual funds, CDs, IRAs, stock, bonds and all other types of investments excluding primary home and other real estate investments). Respondents in the study were defined as aged 18 to 34 (millennials) with investable assets between $50,000 and $250,000 or those aged 18 to 34 who have investable assets between $20,000 and $50,000 with an annual income of at least $50,000; or aged 35-plus with investable assets between $50,000 and $250,000. We conducted an oversampling of 300 mass affluents in the following markets: San Francisco; Los Angeles; Orange County, California; Dallas; New Jersey; South Florida; Chicago; Atlanta; and Phoenix. The margin of error is +/- 3.0 percent for the national sample and about +/- 5.7 percent for the oversample markets, all reported at a 95 percent confidence level.
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