Problem or opportunity? Probably both, and another reason for the need for financial wellness. If Americans are worried about their affordable quality of life in retirement, they aren’t doing a whole lot about it.
Indeed, the latest COUNTRY Financial Security Index finds they are, in fact, worried, but over half say they aren’t saving money to retire.
The index adds that two in three Americans (67 percent) report the country’s current events are making them concerned about their financial future.
Given this backdrop, it may not come as a surprise the survey also found almost a third (32 percent) of Americans worry they either will not be able to retire or will need to delay retirement in the future.
Despite this fact, over half of those surveyed (51 percent) do not include retirement in their long-term financial goals, something that’s further supported by the left-leaning Economic Policy Institute’s The State of American Retirement report, which finds “nearly half of families have no retirement savings accounts at all.”
The lack of retirement savings could in part be due to prioritizing short-term financial considerations. Americans report they are more concerned about affording unexpected expenses (44 percent), healthcare costs (41 percent) and taking desired vacations (36 percent) than they are about having adequate retirement savings (32 percent).
“Many Americans are outliving their assets because they did not include retirement in their long-term financial goals,” Doyle Williams, an executive vice president at COUNTRY Financial, said in a statement. “We strongly encourage people to develop a long-term plan so they can eliminate the fear of never being able to retire. By taking some simple steps almost everyone can have a plan in place to secure their financial future.”
With advancements in health care, it’s not uncommon for people to spend more years in retirement than previous generations, he noted.
“For planning purposes, a good rule of thumb is to assume living to about age 90 unless health or family history indicate otherwise,” according to the company. “Moreover, the desired standard of living during retirement will influence how much money you will need. It is advised that you plan on at least 75 percent of your pre-retirement income to pay for living expenses during retirement.”
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.
