About half of retirees ages 55 to 79 expect tax increases and changes in Medicare and Medicaid to affect their ability to cover retirement costs.
LIMRA, Windsor, Conn., has published that finding in a summary of a recent consumer survey.
LIMRA researchers found that about 75% of retirees collect income from a traditional pension plan and that 44% get income from investments and taxable savings.
Only 35% have annuities, and just 25% say they get income from sources such as employee earnings, defined contribution retirement plans and individual retirement accounts.
Retirees estimate they spend about half of their income on basic living expenses.
Fewer than half of the retirees surveyed had worked with paid professional advisors to make investment decisions, and only 22% had formal retirement plans.
- Warren S. Hersch