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Top Five Pre-Retirement Worries

The Society of Actuaries conducts a retirement risks survey every other year with Americans who have retired and those who are not yet retired. According to their latest survey from 2015 (published in 2016), pre-retirees worry most about:

  • Not having enough money to pay for a long stay in a nursing home or a long period of care at home (69% worry about this)
  • The value of savings and investments not keeping up with inflation (69%)
  • Not having enough money to pay for health care (67%)
  • Not being able to maintain a reasonable standard of living the rest of life (63%)
  • Fear of depleting all of savings (62%).

Fear about not being able to leave money to children or others was listed as a worry by 34% of survey participants and fear about being a victim of a fraud or scam popped up for 28% of the respondents.

Interestingly, in every category retirees are less worried than are pre-retirees. For example, while 62% of pre-retirees worry about depleting their savings, only 43% of retirees are worried about it.

There are no major surprises in these finding; however, the prevalence of the worries is noteworthy. That is, if you’ve thought about these challenges to a happy retirement and are a little concerned or even worried about these challenges, you are not alone. It’s very common — that is “normal”– to be worried about these challenges. Our best answer to each of these:

You need to start planning for retirement early enough so you can do something about each of your worries.

If you’re 5-10 years before your desired retirement date, now is a good time to start with a Total Retirement Plan. If you’re less than five years away from your retirement date, you may have to postpone your retirement to be better prepared financially to start the next phase of your life.