Isn’t retirement supposed to be a time of reduced stress?
A new survey from Franklin Templeton finds that nearly three-quarters (73%) of Americans report thinking about retirement saving and investing to be a source of stress and anxiety.
The survey, “2013 Franklin Templeton Retirement Income Strategies and Expectations,” also finds more than a third (37%) of respondents indicated they were more concerned about outliving their assets or having to make major sacrifices to their retirement plans today than 12 months ago. In response to this, two-thirds (67%) of pre-retirees indicated they were willing to make financial sacrifices now in order to live better in retirement.
“The findings reveal that the pressures of saving for retirement are felt much earlier than you might expect. Some people begin feeling the weight of affording retirement as early as 30 years before they reach that phase of their life,” Michael Doshier, vice president of retirement marketing for Franklin Templeton Investments, said in a statement. “Very telling, those who have never worked with a financial advisor are more than three times as likely to indicate a significant degree of stress and anxiety about their retirement savings as those who currently work with an advisor.”
In contrast to those making financial sacrifices to save, three in 10 American adults have not started saving for retirement. The survey notes it’s not just young adults who are lacking in savings; 68% of those aged 45 to 54 and half of those aged 55 to 64 have $100,000 or less in retirement savings.
Income is a Source of Retirement Stress
Respondents have an understanding of their expected expenses in retirement, indicating that the expenses they are most concerned about paying are health care (48%), living (24% housing, 3% food) and lifestyle (12%). A full 93% of pre-retirees expect their retirement expenses to be similar or less than pre-retirement spending, and only 15% of those retired indicated that their actual retirement spending was more than expected.