Deciding whether to take Social Security early or to apply for benefits later can be challenging. But once the choice has been made, it is time for older folks to look more closely at their assets.
When they do, what will they find?
Recently, the U.S. Federal Reserve Board surveyed more than 12,000 adults in the U.S. as part of its latest annual Economic Well-Being of U.S. Households report. Among other things, the Fed asked those who are 65 or older to list the assets they have taken with them into their golden years.
Here are the most popular assets that senior Americans report having.
6. Life insurance policy cash value
Respondents 65 or older who own this type of asset: 32%
Permanent life insurance policies typically come with a cash value component that builds over time. In many cases, policyholders can tap into this cash value when they need the money.
Experts frequently have differing views about the value of permanent life insurance. If you are unsure about whether a policy is right for you, check out “7 Questions You Should Ask Before Buying Life Insurance.”
5. Stocks, bonds and other investments outside a retirement account
Respondents 65 or older who own this type of asset: 48%
Contributing the maximum-allowed amount of money to your retirement accounts can be a great way to save for your golden years. But why stop there?
You can continue to invest money in stocks and bonds outside these accounts, and nearly half of seniors 65 and older say they have done just that.
If you plan to get serious about investing, check out “7 Ways You Can Be As Good at Investing as Warren Buffett.”
4. Pension
Respondents 65 or older who own this type of asset: 54%
As everyone knows, pension plans have mostly disappeared from workplaces in the U.S. But just over half of those who are 65 or older are fortunate enough to still have access to defined-benefit pension money through an employer.
3. Retirement account
Respondents 65 or older who own this type of asset: 63%
Nearly two-thirds of those who are 65 or older have tax-preferred retirement accounts, such as a 401(k) plan or an IRA. And while that is a good number, some might be surprised that the percentage isn’t a bit higher.
A large nest egg is one of the best ways to ensure your retirement will be enjoyable and financially stress-free. If you are still working, start saving for retirement as soon as possible. Learn about “7 Easy Ways to Start Building Your Retirement Savings Today.”
2. Savings account or CD
Respondents 65 or older who own this type of asset: 75%
Most adults have money tucked away in a savings account or certificate of deposit (CD), and those who are 65 or older are no exception.
However, some people prefer to keep their cash stashed somewhere else. If you are among those looking for other options, check out “3 of the Best Places to Keep Cash If Trump Changes the FDIC.”
1. Home
Respondents 65 or older who own this type of asset: 84%
In America, there is no place like home: More than 4 in 5 folks age 65 or older own the place where they live.
And many are staying put, as we covered in “3 Reasons Most Homeowners Are Now Staying Put for at Least a Decade — If Not Forever.”
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