10 Worries Keeping Retirees Awake at Night in 2022
After decades of hustle and bustle, working and parenting, saving and investing, people want to relax and enjoy their fourth quarter of life.
Unfortunately, it doesn’t always work that way.
Humans tend to worry, and golden years can be dreadful. Will your assets hold up? Does your health?
As part of his recent Retiree Thoughts Survey, the Employee Benefit Research Institute asked more than 1,100 American retirees, “What financial worries are keeping you up at night now that you’re retired?” All respondents were between the ages of 55 and 80 and had at least $50,000 in financial assets.
Read on for an overview of the main concerns.
10. Housing costs
Retirees who cited this concern: 12%
Besides mortgage payments, homeownership costs can include a myriad of other expenses to keep a roof over your head – repairs, maintenance, property taxes, homeowners association dues, utilities and insurance. A leaky roof, broken drain, or termite problem, for example, could cost thousands of dollars to repair.
To save money on maintenance, check out “Housekeeping Tips to Save Money for Every Month of the Year.”
9. If I can leave a legacy
Retirees who cited this concern: 13%
It sounds like a no-brainer – you want to pass on some of your hard-earned money to your children and other family members, and your ability varies greatly depending on wealth, age at death, and level of income. ‘education.
But it’s not necessarily that simple. You need to make sure you have enough money for you and your spouse. Unexpected illness and exorbitant health care costs, such as nursing home care and other types of long-term care, can wipe out your savings. Then there’s the rising cost of everything.
8. Provide financial security for my spouse if I die
Retirees who cited this concern: 15%
Too often, couples fail to plan for their retirement years, and this lack of planning can lead to feelings of dread about what will happen to the surviving spouse if a breadwinner dies before their time.
AARP Lists Several things can be done to ease pre-retirement worries: Update the beneficiaries of all accounts, purchase adequate life insurance, and list accounts and passwords along with their monthly payments.
But don’t wait until it’s too late.
7. Current expenses
Retirees who cited this concern: 19%
Aside from big expenses like health care, insurance, and housing, it’s day-to-day expenses that can literally wipe out your retirement savings.
Regular gasoline prices, for example, increase of $1.51 per gallon between July 2021 and this month of July. And there are plenty of other costs that keep your debit cards busy – groceries, dining out, gifts, subscriptions.
To help ease the pain, check out “15 Ways Retirees Can Stretch Their Savings.”
6. Unforeseen non-medical emergency expenses
Retirees who cited this concern: 28%
The car’s transmission is over, your beloved pet needs surgery, the water heater has imploded. Things like this happen, and it’s not a question of if but when!
Plan for the unexpected. Create a healthy emergency fund and check out “How to Avoid Being Surprised by 7 Unpleasant Expenses”.
4. Market volatility (tie)
Retirees who cited this concern: 33%
The stock market’s incredible bull run has turned into a topsy-turvy race in 2022.
At times like these, it’s tempting to worry that your portfolio will shrink during your retirement. But it is imperative not to make financial decisions out of fear. We detail the best moves in “Retiring in a Bear Market? 7 Things to Do Now.
4. Short of Money (Tie)
Retirees who cited this concern: 33%
It’s a huge fear, isn’t it? You’ve stopped working and you’re looking at maybe another two or three decades – or more – of having to pay for things.
The Employee Benefits Research Institute valued in 2019 that only 59.4% of US households led by someone between the ages of 35 and 64 would avoid running out of money during retirement.
But retirees need not fear, but rather need to act. We detail how to tighten the budget. There is also the idea of bringing back cash. Retirees can obtain a secondary activity, a part-time job or a passive investment.
3. Emergency medical expenses
Retirees who cited this concern: 34%
A heart attack, a stroke or a broken bone can bring retirees to the emergency room, and it’s not easy on the wallet. A visit to the emergency room can make you back down hundreds of dollars, on average, with the highest costs for those 65 and older.
2. Costs of preventive health care and long-term care
Retirees who cited this concern: 36%
The Rolling Stones sang “What a brake it gets old,” and it’s true for retirees who aren’t prepared for years of long-term care.
According Genworth Financialcosts can range from $1,690 per month for adult day health care to $9,034 per month for a private room in a nursing home.
Long-term care insurance can mitigate those expenses, and Money Talks News provides advice on when to get a policy.
Even outside of long-term care, retirees will still feel the pinch in healthcare costs. Fidelity Investments estimates that a couple, both age 65, retiring in 2022 can expect to pay more than $300,000 in medical expenses during retirement, on average.
Retirees who cited this concern: 54%
According to the Federal Bureau of Labor Statistics, prices increase by 9.1% between June 2021 and this month of June.
This means you pay $9 more for every $100 spent. This could mean spending hundreds or even thousands of dollars more each year if inflation remains high or even increases.
But we can help you. Check out “5 Ways Retirees Can Reduce Their Inflation Risk”.
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