What’s Your Money Fear?

According to a recent survey from the Transamerica Center for Retirement Studies running out of money is the biggest fear among Americans.

CreditCards.com infographic: Americans fear running out of retirement money, survey saysThe survey reveals that American workers feel they are unprepared for retirement. They also believe that they do not have a sufficient  backup plan in the event they are forced into retirement earlier than planned by health crisis or job loss.

The survey found that many Americans, simply plan  to work longer than the traditional retirement age, or work during retirement:

  • 39% of workers plan to work past age 70 or do not plan to retire
  • 54% of workers expect to plan to continue working when they retire
  • 40% now expect to work longer and retire at an older age since the recession

Most workers expect to work out of financial necessity:

  • Workers estimate their retirement savings needs at $600,000 (median), but in comparison, fewer than one-third have currently saved more than $100,000 in all household retirement accounts
  • Most workers agree that they could work until age 65 and still not have enough money saved to meet their retirement needs
  • Of those who plan on working past the traditional retirement age of 65, the most commonly cited reasons are of need versus choice
  • 31 % anticipate that they will need to provide financial support to family members

According to the survey 56% of workers said they have a retirement strategy; however, only 10 percent said that they have a written plan, the other 46% who said that they have a plan but it is not written down.

Overcome your money fears by looking them in the face:

  1. Talk with friends and family about the need to plan and save.
  2. Learn about government benefits such as Social Security, Medicare, and Medicaid
  3. Meet with a financial advisor to discuss your retirement funding
  4. Create a strategy to catch up savings, if you savings is underfunded.
  5. Develop plans to cover future health care costs
  6. Make a written plan
  7. Include a back-up strategy in your plan in case of unexpected job loss or other forced retirement
  8. Revisit and update your plan annually
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