Schwab’s Real Life Retirement Services provides insightful information and online tools for retirement planning
Public Company Information:
SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab, one of the country’s leading providers of saving, investment and income solutions for people in or transitioning into retirement, is wishing a happy birthday to the first of the more than 75 million baby boomers turning 65 between now and 2029.
According to the US Census, one baby boomer will reach the traditional retirement age every eight seconds for the next 18 years. While the majority (54 percent) does not expect to delay their planned retirement date despite recent economic challenges, according to Schwab’s 2010 fourth quarter retirement pulse survey, data on demographic trends suggest that retirement itself may be changing as the baby boom generation enters this stage of life, presenting new challenges and opportunities ahead:
- From Baby Boom to “Senior Boom”: According to the US Census, the group of those aged 65 and older will increase 79 percent between 2010 and 2030.
- Rising healthcare expenses: The gap between expected and actual healthcare costs may take a significant toll on retirement savings. Expected retirement healthcare costs are approximately $33,000, but actual out-of-pocket health expenses for a retiree living to age 100 are closer to $166,000 (source: First Command Financial Behaviors Index, 2009)
- The role of work: Schwab found that 88 percent of those surveyed expect to continue working even after becoming eligible for full retirement benefits, citing “the need for more money” (28 percent) as the leading reason, followed closely by a desire to remain active mentally, physically or socially (25 percent). (source: Schwab 2010 fourth quarter pulse survey)
- Financial help in retirement: Schwab’s survey found 44 percent of Americans on the brink of retirement expect to retire with debt; 21 percent of those in their fifties anticipate needing the financial support of others at some point during their retirement. (source: Schwab 2010 third quarter pulse survey)
- High expectations for Social Security: According to Schwab’s survey, 84 percent of Americans 65 and older are counting on Social Security to at least supplement retirement savings, with 30 percent expecting it to be a primary source of income in retirement. (source: Schwab 2010 fourth quarter pulse survey)
“We’ve reached a historic moment this month with the first of a wave of boomers turning 65. We’d like to wish them a happy birthday and welcome them to the next of many transitions in their lives,” said Carrie Schwab-Pomerantz, President, Charles Schwab Foundation, and Senior Vice President, Schwab Community Services. “While some boomers may be retiring this year at 65, many more will be preparing to retire over the next 18 years. At Schwab, we talk to our clients every day as they plan for their retirement years and prepare to transition from growing their retirement nest egg to living off of it.”
For More Information
To help the millions of Americans nearing retirement, Schwab’s Real Life Retirement Services provides insightful information and online tools to help answer questions such as:
- Can I afford to retire?
- When should I take Social Security?
- How can I generate retirement income?
Schwab’s realistic approach to retirement also highlights stories from Americans who have successfully transitioned into retirement. For more information, please visit www.schwab.com/RealLifeRetirement or follow Schwab on Twitter @CharlesSchwab.
About the Charles Schwab Quarterly Retirement Pulse Surveys
The Charles Schwab Quarterly Retirement Pulse Surveys are conducted by Kelton Research using Random Digit Dialing of listed and unlisted numbers. Quotas are set to ensure reliable and accurate representation of the entire U.S. population ages 18 and over. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. The chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 2.2 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
About Charles Schwab
The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of financial services, with more than 300 offices and 8.0 million client brokerage accounts, 1.5 million corporate retirement plan participants, 681,000 banking accounts, and $1.5 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides banking and mortgage services and products. More information is available at www.schwab.com and www.aboutschwab.com. (1210-8103)
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