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The Financial Costs of Living Longer

Most of us look forward to the time when we’ll be able to spend our days gardening and playing gin rummy until we go to sleep at 6 p.m. stress-free. Or, well, whatever you want to do as an old person.

But old age might ruin our retirement plans, according to a new study by Northwestern Mutual. It found 65 percent of American adults believe they may outlive their savings. Only 24 percent are confident that Social Security will be available in the future.

So what’s been the solution for most? Well, for nearly half of Americans (44 percent), it’s doing nothing. Only a fraction of adults have…

  • Increased savings (21 percent)
  • Sought out advice from an adviser (16 percent)
  • Purchased insurance (10 percent)
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Still, many are naively optimistic about achieving the American Dream. Participants said financial security was essential to achieving the American Dream (58 percent), only marginally second to having a happy family life (59 percent). However, when it comes to money, a good portion…

  • Don’t feel safe money-wise (29 percent)
  • Don’t consider themselves to be “disciplined” when it comes to finances (34 percent)
  • “Don’t not plan at all” and “have not set any financial goals” (12 percent)

So a lot of us aren’t really prepared to retire. But I suppose we’ve got a bit of time to figure it out, right?

 

Posted in: Budgeting & Saving, News, Retirement
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