Nerd News

According to the recent study made by Ernst & Young, most middle-class retirees have the potential to outlive their retirement savings if they still continue their way of living like that of their pre-retirement lifestyle. The study was conducted with the help of 5 Americans belonging to the middle-class which is about to enter retirement. Ernst & Young found out that three of the subjects will outlive their financial assets.

The research also stated that these middle-class Americans have to reduce as much as 24 percent of their pre-retirement lifestyle so that their financial assets can last longer. Moreover, those middle-income Americans who are at least 7 years away from retirement are less prepared. Therefore, they must reduce as much as 37 percent of their lifestyle in order to save more once they are already retired.

Tom Neubig, a researcher from Ernst & Yoing said that most of the Americans are seeing retirement as a part of their life where they can still continue their way of living without the need to work since they thought they have already saved enough money. But in reality, these retirees have to cut off some of their expenses so that they can still have sufficient assets for the years to come.

Ernst & Young also concluded that the soon-to-be retirees must look for other sources of retirement income, aside from the Social Security. If they would greatly depend on the Social Security retirement income, they have at least 90 percent chance of outliving their retirement savings.

Posted by sexy_geek at 3:35 PM