Retirement is a new phase of life. After spending roughly one-third of our lives growing up and another one-third working, we move into a final period of reaping the fruits of our labors.
But the undeniable joys of retired life also come with serious concerns. Some of those worries are social — what will we do with all that time? But many other anxieties swirl around finances.
Recently, AIG Life & Retirement published its Moving Forward study, a survey of 1,000 Americans between the ages of 22 and 76 with household incomes of at least $40,000.
As part of the survey, the finance and insurance company asked respondents to list their top retirement concerns. Following are the worries people say are most top-of-mind.
7. Providing financial support to family members
Respondents who cited this concern: 72%
Work may end, but worries about loved ones often continue. Whether your concerns are focused on children and grandchildren or a spouse, we all want the best for our families.
If this worry is top-of-mind for you, consider building a savings stash you can tap into when times get tough. One great way to do that is to work part time. For more, check out:
6. Running out of money in retirement
Respondents who cited this concern: 74%
We’ve all heard the saying: “Make sure you don’t run out of money before you run out of life.”
No matter how shopworn that phrase is, it still carries the important lesson that your finances must be in good shape before you retire.
Learning more about the right ways to invest can dramatically reduce your risk of running out of cash during your golden years. Start the education process by enrolling in the Money Talks News retirement course The Only Retirement Guide You'll Ever Need.
Money Talks News founder Stacy Johnson teaches this 14-week course. It will teach you everything you need to know to confidently plan your golden years, from how to escape debt fast to getting the most from Social Security.
5. Availability/amount of Social Security when I retire
Respondents who cited this priority: 77%
Each year, the news about the future of the Social Security program seems to grow worse. Still, many experts believe these fears are overstated, insisting that Social Security will remain a mainstay of retirement for generations to come.
Regardless of what happens to the program in the future, you can take steps to maximize your Social Security.
4. Being financially prepared for emergencies
Respondents who cited this priority: 78%
Life is full of surprises, both good and bad. It was a fact when you were 6, and it remains true for those who are 90.
While there is no way to fully prepare for life’s turmoil, having a solid financial cushion can go a long way toward calming anxieties. Fortunately, building a solid emergency fund isn’t nearly as difficult as most people think.
For more, read “9 Tips for Starting an Emergency Fund Today.”
3. Remaining independent later in life
Respondents who cited this priority: 79%
Loss of independence is one of the biggest and most commonly shared fears as we age. There is no getting around it: The older we get, the more our physical and mental abilities begin to ebb.
One way to stay independent for longer is to make changes to your home before your health fails so you can age in place.
1. Inflation (tie)
Respondents who cited this priority: 80%
For many years, Americans gave nary a thought to inflation. Prices seemed well under control, making it easier to meet our monthly budgets.
Those days are over, at least for now. Inflation is red hot, worse than it has been in many decades.
Experts repeatedly assure us these price increases are temporary. So, with any luck, inflation soon will subside. But if it doesn’t, don’t let rising prices get you down. Instead, fight back.
Learn more in:
1. Health care costs in retirement (tie)
Respondents who cited this priority: 80%
As we’ve said, prices at the grocery store and the gas pump may fall soon. But few of us are kidding ourselves that health care will ever become more affordable.
So, take matters into your own hands and save where you can. One of the best ways to trim health care costs in retirement is to open a health savings account if you can.
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