Why Even the Wealthy are Biting Their Nails Over Retirement

Photo (cc) by aag_photos

This may surprise you, but even affluent Americans fret about money issues in retirement.

Wealthy Americans seem to have the same retirement worries as their less-affluent counterparts, including concerns about having enough money saved for retirement, reducing personal debt and curbing overspending.

The Merrill Edge Report is focused on the financial concerns and priorities of affluent Americans, defined as households with investable assets ranging from $50,000 to $250,000.

The survey revealed a big difference in opinion about money and retirement between affluent working Americans and their retired counterparts, which could be because the financial landscape of retirement is becoming more complex amid rising health care costs and Social Security concerns.

“The most stressful part about planning for retirement for me is all summed up into one word – uncertainty,” said one survey respondent.

Based on their retirement savings, 73 percent of affluent retirees said they’re confident they have enough money to last them through retirement, while just 57 percent of nonretired wealthy Americans said they think they’ll have enough money for retirement.

“Unknown factors scare me the most about retirement,” said one survey respondent. “Will Social Security still be around? Will my employer change or eliminate my pension plan or cut retiree benefits? What will medical costs be like or will a family member have a catastrophic illness?”

While the majority (59 percent) of affluent retired Americans said they don’t feel stressed about their retirement finances, just 33 percent of nonretirees could say the same.

“Perhaps one cause of this anticipated financial stress is that a large number of nonretired Americans believe they’ll need to rely on their personal savings and investments to live on in retirement,” said Aron Levine, head of Merrill Edge. “Even though current retirees report they are not as anxious about money, younger Americans can learn from their example — that preparation pays off.”

One survey respondent said the key to lowering financial stress in retirement is simple: “I feel that what has made my retirement secure is during my productive years I lived below my income and invested wisely.”

Obviously, that piece of financial advice is sound, though it’s likely easier for an affluent American than a low-income American to save more and spend less of their income.

Are you worried that you haven’t saved enough for retirement? Check out “Behind on Retirement Savings? Here Is What To Do.” Find more tips in “The 10 Golden Rules of Retiring Rich.”

What are your biggest financial worries for retirement? Share your comments below or, better still, visit our Forums. It’s the place where you can speak your mind, explore topics in-depth and, most important, post questions and get answers.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
4 Streaming TV Services That Cost $20 a Month — or Less
4 Streaming TV Services That Cost $20 a Month — or Less

Here’s how to ditch cable and satellite TV — and save a bundle — without giving up your favorite shows.

7 Steps to Keep Your Car Looking Like New
7 Steps to Keep Your Car Looking Like New

Take a few steps to preserve the beauty of your car, and you stand to get a lot more money at trade-in time.

These 12 Reusable Products Save You Money Over and Over
These 12 Reusable Products Save You Money Over and Over

Buy reusable versions of these household items, and you won’t have to spend another dime on them for years.

10 Expenses You Should Not Put on a Credit Card
10 Expenses You Should Not Put on a Credit Card

Sometimes it’s simply safer to keep the plastic tucked away.

11 Small Money Moves That Will Make a Big Difference
11 Small Money Moves That Will Make a Big Difference

These small money moves will pay off big in the long run.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

11 Senior Discounts for Anyone Age 55 or Older
11 Senior Discounts for Anyone Age 55 or Older

There is no need to wait until you’re 65 to take advantage of so-called “senior” discounts.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

9 Deep Discounts Available on Amazon This Friday
9 Deep Discounts Available on Amazon This Friday

These items are all steeply discounted — but the deals won’t last long.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

15 Amazon Purchases That We Are Loving Right Now
15 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.