A retirement planning survey by the Illinois-based Society of Actuaries finds the main retirement concerns seniors have are keeping the value of investments up with inflation, the effect of interest rates on income, the affordability of health care and long-term care, outliving assets and maintaining a reasonable standard of living.
Housing remains the greatest asset for many, and home equity represents two-thirds or more of most respondents’ total assets. The study suggests many will have to look to other housing options, instead of remaining in their homes, in that even a paid-off house might not substantially lower the need for income when looking at the big picture of retirement expenses.
The survey also shows putting home equity toward retirement is not part of the plan for most respondents, and health care and long-term care continue to be major concerns but also almost all respondents cite pursuing a healthy lifestyle as a “primary risk management strategy,” according to the survey.
Other findings were:
- More than 80 percent do not look ahead more than 20 years when making important financial decisions, and only 5 percent look to or beyond their life expectancy.
- Sixty-eight percent of retirees have created a plan to manage their money each year to avoid outliving their finances.
- Additionally, 73 percent of retirees have considered allocating their investments and savings to different types of assets. Just 24 percent of retirees, however, have purchased or plan to buy any guaranteed income products.
Source: Senior Housing News