Global Atlantic Retirement Spending Study finds married or cohabiting retirees have more diverse income streams and spend more in retirement
February 11, 2019 09:00 AM Eastern Standard Time — NEW YORK–(BUSINESS WIRE)–In some good news for lovebirds this Valentine’s Day, new data from Global Atlantic Financial Group’s Retirement Spending Study shows that retirees who are married or living with a significant other have fewer financial regrets than those who are single.
While two out of three single retirees (64%) report having retirement planning regrets, fewer than half of retirees in relationships (49%) do. Nearly half (45%) of single retirees regret that they did not save enough money (compared to 30% of those in relationships). Nearly three in ten retired singles (28%) regret relying too much on Social Security (compared to 15% of those in relationships).
“The findings may speak to the human tendency to want to plan better when the wellbeing of a loved one is involved,” said Paula Nelson, President, Retirement at Global Atlantic. “Regardless of relationship status, individuals who are saving for retirement would benefit from working closely with financial advisors to assess their retirement income needs and consider different strategies for generating that income.”
More Diverse Income Streams
One differentiating factor is that retirees in relationships appear to have more diverse income streams than single retirees. One in four (24%) retirees who is married or cohabiting reports having an annuity, compared to only 15% of single retirees. Those who are married or cohabiting are also more likely to collect income from pension plans (50% vs. 34%); 401(k)s or other defined contribution plans (33% vs. 17%); investment portfolios (39% vs. 19%); and savings accounts (58% vs. 42%).
Perhaps reflecting the benefits of diverse income streams, the survey found that retirees in relationships are more likely to maintain their lifestyles, with fewer cut backs on discretionary expenses during retirement, such as:
- Restaurants and entertainment (39% vs. 56%)
- Travel and vacations (33% vs. 43%)
- Charitable giving (23% vs. 28%); and
- Housing (14% vs. 33%).
“While those in relationships may have some financial advantages, single people can absolutely thrive in retirement,” Nelson added. “They can mitigate the risk of facing financial regrets by diversifying their income streams. For example, they may consider annuities to add protected income streams that they can collect for the rest of their lives.”
To view more data, insights and interactive graphics from the Global Atlantic Retirement Spending Study: Perception vs. Reality, including data referenced in this press release, please click here.
The Global Atlantic retirement study was completed online among a random sample of the general U.S. population aged 40 and older, including an oversample of 10 of the most populous states: California, Texas, Florida, New York, Illinois, Pennsylvania, Ohio, Georgia, Michigan, and New Jersey. North Carolina was included in the national sample but not oversampled due to effects of Hurricane Florence on the state.
A total of 4,223 consumers participated, equally representing retirees and individuals not retired. Fieldwork was led by independent global market analytics firm Echo Research between September 12 and 24, 2018. The margin of error when reporting on the total sample of retirees and individuals not retired is +/- 2.1 percent at the 95 percent confidence level.