If it’s not one thing, it’s another…
The majority of Americans are confident they’ll have enough money to retire comfortably—if only the high cost of healthcare wasn’t so concerning.
In a poll of 401k and other investors ages 35 to 64, two-thirds said they’re somewhat confident (39 percent) or very confident (26 percent), they have saved or will save enough for a secure retirement.
But that’s not to say they’re free from worries, according to pollsters Kiplinger’s Personal Finance and Personal Capital.
Around a quarter of respondents (22 percent) are worried about healthcare expenses in retirement. Another 18 percent are concerned they won’t have enough savings to live a desirable lifestyle. And 16 percent are troubled by the idea of running out of money altogether.
The silver lining is many workers are in fact saving—a decent percentage of their pay to boot. The average American has $327,090 in a 401k or other account, and is putting aside 13.3 percent of their annual income.
Most—85 percent of those under 50, and 67 percent of those over 50—plan to remain working full-time as long as possible, too.
Men believe they can retire comfortably with $985,920, while women think an $828,360 nest egg will suffice.
Around six in 10 respondents with long-term financial plans are working with a financial planner.
“Health costs represent a growing concern among aging Americans—which is why it’s crucial to begin saving for retirement well in advance,” Mark Solheim, editor of Kiplinger’s Personal Finance, said in a statement. “Saving as much as possible today ensures a comfortable and secure retirement tomorrow. Our poll shows a promising trend: By and large, Americans are prioritizing retirement planning. Most are stashing a respectable chunk of their income in savings, and nearly three-fourths have a long-term financial plan.”
Yet, more than half of those polled are ignoring one crucial element: their withdrawal plan.
Jay Shah, CEO of Personal Capital, recommends participants use digital tools to determine which accounts to draw from and when in order to maximize retirement income.