Gex X—that cynical, sullen bunch—aren’t known for their sunny outlook, and Gen X women, in particular, are most concerned about managing retirement income to meet their expenses.
And those most confident? Millennial men (of course).
The latest Retirement Income Strategies and Expectations (RISE) survey from Franklin Templeton Investments found that, overall, Americans are most concerned about paying for medical and pharmaceutical expenses in retirement, followed by paying off debt and funding assisted living.
Digging deeper into retirement income concerns and strategies across generations, views and specific needs begin to diverge.
“This year’s RISE survey findings really highlight how individualized a person’s retirement savings plan needs to be,” Michael Doshier, vice president of Retirement Marketing at the firm, said in a statement. “The differences between generations, even among those of the same gender, show that comprehensive retirement planning requires a holistic view that incorporates demographic differences and short-term risk tolerances as well as long-term goals.”
A majority of Gen X and Millennial women noted that they would prefer to keep working and retire later if they were unable to retire as planned due to insufficient income (58 percent and 60 percent, respectively). Meanwhile, only 42 percent of their female Baby Boomer counterparts indicated they would delay retirement in these circumstances.
Most Millennial men (61 percent) express more concern about shorter-term market volatility than they do about not achieving their long-term goals.
Comparatively, only 40 percent of Gen X men and 50 percent of Baby Boomer men express more concern about this shorter-term market volatility vs. achieving their long-term goals.
While medical expenses are a major concern, nearly half of all respondents (46 percent) expressed that they don’t know how they’re going to pay for these expenses in retirement.
That said, 76 percent of people who aren’t retired yet, aren’t using or don’t have access to a Health Savings Account (HSA) to save for their medical expenses.
Additional RISE Survey Highlights:
- One-third of respondents (33 percent) are concerned about running out of money in retirement, outpacing concerns about health issues (26 percent) and having an inactive lifestyle (11 percent).
- Social Security will be the top source of retirement income for nearly half of all respondents (49 percent), followed by a current or prior workplace retirement plan (41 percent) and a checking and savings account (27 percent).
- One-third (33 percent) of workers state that not having enough saved would be the most likely reason their retirement could be delayed, compared to only 3 percent of current retirees who say their retirement was delayed for this reason.
- The majority of Americans (62 percent) consider a financial advisor important to retirement planning; however, less than one-third (29 percent) of those surveyed currently work with a financial advisor.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
