Fuel to the fire for advisors looking to make a case for products including universal life is a new survey which suggests that more folks worry they will run out of money in retirement, mostly due to concerns about inflation and the rising cost of health care.
A survey by the Society of Actuaries found that people already retired were most worried about inflation and affording long-term care. Pre-retirees, meanwhile, ranked affordable health care as their top concern, followed by inflation and long-term care coverage. Overall, pre-retirees showed greater worries than those already in retirement, the study found.
Anna M. Rappaport, a consulting actuary based in Chicago and supervisor of the report, said that one theory for the difference in the levels of concern could be that “for the pre-retiree, retirement is still an unknown.”
Rappaport said she was surprised that people weren’t more worried.
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“Now they’re not as concerned as we think they should be,” Rappaport said. Rappaport added that Americans appear to be underestimating the financial impact of the death of a spouse. About 60 percent of those responding to the survey felt there would be little impact when a spouse dies, but Rappaport said that surviving spouses often experience significant drops in income and benefit coverage, especially women.