Saving for retirement can be stressful and frustrating for many people. Growing concerns over the sustainability of programs like Social Security create worry, but many struggle to save on their own.
It’s also a concern that affects people of all walks of life.
Current Retirees vs. Upcoming
Based on retirement savings, 73% of wealthy retirees reported being confident that they saved enough to last them throughout their retirement. However, only 57% of wealthy people who are not retired think they will have enough money saved. Therefore, it’s no surprise that while 59% of wealthy retirees reported not feeling stressed about retirement savings, only 33% of people who are not retired could say the same.
Today, it appears as though wealthy people have the same worries about retirement as less wealthy people. Concerns include having enough money saved, reducing personal debt, and how to avoid overspending. When it comes to these areas, the most frequently studied group consists of households having investable assets from $50,000 to $250,000.
Uncertainty the Main Issue
With the structure of retirement changing due to complexity, rising costs of healthcare and Social Security, there is a difference in opinion about money and retirement between wealthy working people and retirees. Among these studies, survey respondents frequently answer that the most stressful part about planning for retirement is uncertainty.
The main concerns about unknown factors include:
- Will Social Security still exist when retirement age is reached?
- Will employers change/ eliminate pension plans or cut retirement benefits?
- What will medical costs be like?
- Will a family member suffer from an unexpected illness?
It’s important to note that current retirees who reported having little worry about their retirement stated that living below their means, saving and investing their savings is what allowed them to feel comfortable.
Are you prepared for retirement? Regardless of where you are in life, be sure to have a plan ready for your finances during your retirement.