Living longer may have its rewards, but it also keeps middle-class boomers anxious about their retirement security.
Declining health and the ability to create a sustainable retirement income were two primary concerns among boomers, according to a report from Bankers Life and Casualty Company Center for a Secure Retirement.
While more than half (55%) of boomers have saved less than $100,000 for retirement, 19% have saved less than $10,000, according to the findings.
This adds to the study’s findings that nearly two-thirds, or 62%, of pre-retirees report some level of anxiety about retirement—with 28% reporting being “anxious” or “very anxious.”
For this reason, according to the study, it is not surprising that three out of four (75%) middle-income boomers expect to work in retirement, however, simply working longer may not be the answer to the longevity risk dilemma.
Since no one can predict how long they will live,—as unexpected illnesses or accidents can threaten employment in later years—assessing longevity can be an effective tool in planning for retirement.
To compensate for the possibility of outliving their savings, boomers have planned a number of ways to deal with shortfalls in retirement income, including a reduction in spending (63%); getting a part-time job in retirement (41%); and selling their home (25%).
About 44% admit that their retirement savings may not last until the end of their life, yet when it comes to developing a savings goal, only 21% of middle-income retirees and pre-retirees have calculated a monthly retirement income goal number.
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