Today’s retirees are full of worry.
Less than half of retirees — 40% — believe they have enough money to carry them through retirement, according to the latest annual retirement survey by Schroders, a multinational asset management company.
In addition, 45% say expenses are higher in their golden years than they had anticipated, and 62% admit that they have “no idea” how long their savings will last.
As retirees fret about their financial future, the following concerns weigh especially heavy on their minds.
5. Outliving assets
Retired survey respondents who said they are at least slightly concerned about this: 70%
Saying goodbye to a steady paycheck can be scary. Most of us have worked for the vast majority of our adult lives, using our income to cover daily expenses and to build a nest egg.
That routine ends when you retire. At that point, Social Security and your nest egg are all you have to see you through what is typically a period that stretches out for decades.
If you worry about running out of money during your golden years, perhaps it’s time to learn more about the “15 Ways Retirees Can Stretch Their Savings for 30 Years.”
4. Not knowing how best to generate income and/or draw down assets
Retired survey respondents who said they are at least slightly concerned about this: 71%
For some people, building a nest egg is the easy part. Tapping into that money during retirement — and making sure you do it right — is a lot scarier.
How much money should you withdraw each year? What is the most tax-efficient way to make withdrawals? If these questions leave you flummoxed, a little professional help might be in order.
The right financial advisor for your needs can help you find answers to your big retirement questions.
3. A major market downturn significantly reducing assets
Retired survey respondents who said they are at least slightly concerned about this: 80%
The stock market has surged over the past few years, enjoying one of its best runs since the 1990s. But the epic bull market of the ’90s eventually collapsed, and today’s retirees worry a similar pattern could soon repeat itself.
Over the long haul, stocks tend to do quite well. Still, the prospect of occasional bearish periods is enough to keep some retirees from sleeping well at night.
To find out how to better survive an economic downturn, read “Recession Wisdom From Warren Buffett and 4 Other Experts.”
2. Higher health care costs than expected
Retired survey respondents who said they are at least slightly concerned about this: 86%
It’s simply a fact of life: As you age, you can expect more things to go wrong with your health.
That means you might have to dig into your pockets more often to pay for dental care and some aspects of your health care. And don’t expect Medicare to pay for everything, as we explain in “Retirees, Beware: Medicare Will Not Cover These 11 Medical Costs.”
1. Inflation lessening the value of assets
Retired survey respondents who said they are at least slightly concerned about this: 92%
Whether you are young or old — or working or retired — inflation is on everyone’s mind these days. In recent years, prices have soared on everything imaginable.
Inflation is bad when you are working and trying to make ends meet, but it can be financially fatal for those in retirement. Schroders found that 84% of retirees wish they could better protect their savings from inflation’s corrosive impact.
Discover suggestions for beating higher prices in “5 Ways Retirees Can Lower Their Inflation Risk so Their Savings Last.”
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