4 Retirement Worries That Have Surged in the Past 5 Years

Today’s retirees worry a lot more about their finances than they did a few years ago, according to a new survey from RBC Wealth Management.

The survey of 2,000 households with folks in or nearing retirement found that a number of retiree worries have surged since the last RBC report in 2018.

In an era of high inflation and uncertainty, these are the concerns weighing on retirees today.

4. Estate taxes

Survey respondents who said they are worried about this:

• As of 2023: 17%
• Five years earlier: 3%

During the 2020 presidential campaign, Joe Biden stated his intention to return the estate tax to 2009 levels. Back in 2009, the estate tax exemption was $3.5 million.

To date, that proposal has not come to fruition. Instead, the exemption has been increased gradually over time to account for inflation. For the 2024 tax year, the estate tax exemption is $13.61 million, which means unless an estate’s value exceeds that amount, no federal estate taxes are owed on it.

However, the yawning gap between the 2009 and 2024 numbers — and Biden’s stated pledge to return to the earlier exemption — might be one reason why concerns about estate taxes have jumped fivefold among retirees and pre-retirees.

3. Dying early

Survey respondents who said they are worried about this:

• As of 2023: 25%
• Five years earlier: 11%

In 2018, few of us were thinking of the possibility of life-threatening pandemics. COVID-19 changed all that, of course.

In that context, the fact that the fear of dying early has doubled makes sense.

2. Investment loss

Survey respondents who said they are worried about this:

• As of 2023: 32%
• Five years earlier: 9%

Although the stock market recently hit record highs, it still is not much ahead of where it was in early 2022 — a full two years ago.

That means that in the past couple of years, during the pandemic, many retirees who invest didn’t see the type of returns to which they were accustomed. In particular, 2022 — one of the worst years ever for those who invest in stocks and bonds — likely has left more retirees nervous about their future investment prospects.

1. Outliving their money

Survey respondents who said they are worried about this:

• As of 2023: 43%
• Five years earlier: 37%

Ask a bunch of retirees how much money they have in their nest eggs, and you can expect many to give the same answer: “Not nearly enough.”

The worst bout of inflation in decades has not helped to calm the fears of those who worry about running out of cash before they die.

If higher prices have got you down, learn more about the “10 Sure-Fire Ways to Beat Inflation.”