Underestimating how much one will need to be financially prepared for retirement is rife, and that can have serious consequences, says a study by the American Institute of Certified Public Accountants (AICPA).
AICPA’s survey of CPA financial planners for the third quarter of 2015 reports that 57% of their clients underestimate their likely expenses during their retirement.
Not only that, the CPAs said that more than half of their clients underestimate factors that also will affect their retirements and exacerbate the effect of insufficient funds:
The CPAs said that the biggest explanation for the lack of readiness is overspending.
AICPA’s survey of CPA financial planners for the third quarter of 2015 reports that 57% of their clients underestimate their likely expenses during their retirement.
Not only that, the CPAs said that more than half of their clients underestimate factors that also will affect their retirements and exacerbate the effect of insufficient funds:
- retirement plan participants’ and spouses’ combined life expectancies;
- individual life expectancies; and
- the amount of money they will need during their retirement.
The CPAs said that the biggest explanation for the lack of readiness is overspending.
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