Retirement Headache

Top 2 Retirement Fears

Americans in retirement and those soon to be retirees have serious concerns. According to the Reclaiming the Future Study conducted in 2011-2012 by Allianz Life:

Fear # 1 – American Retirement Crisis/Unprepared:

  • 92% of Americans believe there is a retirement crisis and fear they are unprepared

When asked “Do you believe there is a retirement crisis in this country?”

  • 92% answered absolutely or somewhat.

In the age group 44-54

  • 54% said they feel unprepared for retirement.
  • 57% of all respondents worry about their nest egg safety and it may not be large enough.
  • 47% fear they will not be able to cover basic living expenses.

 Fear #2Americans fear outliving money more than they fear death

  • Increasing longevity mean more people are spending more years in retirement.  
  • 77% of all age groups worry about living too long.  So much so a shocking 61% feared outliving their assets more than they feared death. 

The market meltdown of 2008-2009 caused a profound financial rethinking for Americans. 

  • 53% reported their net worth was significantly eroded in a very short period of time.
  • 43% had their home values drop
  • 41% realized they were not “in control” of their financial futures as they’d thought.

 As a result of this financial turmoil many research participants said they changed their behaviors.

  • Cut back on spending
  • More interest in financial news and studying the markets

The majority agreed- “That the safety of my money matters more.” 

“Asked to consider the features that would be most important to them if they could build the ideal financial product?”

  • 69% of survey respondents said they would prefer a product that was “guaranteed not to lose value”
  • Only 31% would choose a product that is not guaranteed with the goal of “providing a high return.”

Annuity-like solutions are gaining relevance and appeal.

For help you may ask questions in the comments

Or click here to contact me privately: Tim Barton Chartered Financial Consultant