April 22, 2010

Wealthy Americans are worried about retirement

The affluent are slightly less concerned than they were in October, but nearly half still say they are worried about their ability to meet financial goals, a survey by Bank of America's Merrill Lynch found.

Health care costs were a major factor in respondents' worries, and 56 percent said they weren't sure how rising costs would factor into their retirement plans.

Of the groups surveyed by Merrill Lynch, boomers were the most concerned about outliving their retirement. Seventy-three percent said they weren't sure their assets would last and 61 percent were worried about downsizing their lifestyle in retirement.

Forty percent of wealthy boomers said they were postponing retirement at least one year. The survey attributes this in part to the nearly one-third of boomers who are providing care to both children and parents. Of that group, 45 percent have made sacrifices to support their family, 44 percent have given up personal luxuries and 26 percent have cut retirement savings.

Over half of survey respondents said more needed to be done to help people save for retirement. Half said all retirees should have health care coverage, and 44 percent feel more resources need to be put toward Social Security. More than 60 percent of respondents under 64 said they would take advantage of financial education or advice provided by their employers.

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