While adults may not get spooked by Halloween anymore, they do get frightened by one thing: retirement. In fact, recent data found that when it comes to retirement, Americans are most scared about the possibility of outliving their retirement income. Following right behind this top fear is the fear that their savings won’t cover basic necessities or allow them to maintain their current lifestyle.
Here is a breakdown of Americans top retirement fears, according to IALC data:
- Running out of Money—25% of those surveyed said their biggest fear was outlivingtheir retirement savings.
- Terrifying lifestyle changes—23% of responders fear they won’t be able to sustain their current lifestyle
- Frightening Cost of Health Care—19% were scared that he or she wouldn’t be able to pay for medical expenses.
In the face of these fears, Americans aren’t taking action- even at an age where they could more easily start saving. More than half of millennials (54%) have less than $5k saved for retirement, and 37% of millennials have absolutely nothing saved for retirement. That’s 91% of millennials who have nothing or just $5k saved!
How can you conquer your retirement frights? Start by checking out these helpful tips:
- Build a balanced portfolio—One option to mitigate risk in your portfolio is to add a more conservative product like a Fixed Indexed Annuity. An FIA offers guaranteed lifetime income, helping to ease the stress of having to cover unexpected expenses for longer than anticipated.
- Make a personal budget—People who plan can feel confident that they will likely end up saving more. Travel and healthcare expenses may increase during retirement so be sure to take that into account too.
With Americans living longer than ever, they need to take steps now to plan for a better retirement. Fortunately, there are strategies and products available that offer guaranteed lifetime income, helping to ease the stress of having to cover unexpected costs for longer than anticipated. Don’t let your fear paralyze you from taking control.