Two-thirds (67 per cent) of U.S. retirement savers are concerned about their income lasting their lifetime, while 30 per cent are extremely or very concerned, according to a new survey by Global Financial Atlantic Group.
The survey polled individual investors between the ages of 55 and 75 with US$250,000 and $2 million in investable assets who are working with a financial professional. It found 90 per cent of survey respondents said they’re worried about rising health-care expenses and 89 per cent said they’re concerned about inflation’s impact on spending power.
“As economic pressures grow and a record number of Americans head toward retirement, there is rising concern that many could face uncertain futures if retirement security is not adequately addressed,” said Emily LeMay, co-head of individual markets at Global Atlantic, in a press release. “It’s critical we help ensure individuals have access to income for life. This could mean the difference between financial hardship and an enjoyable retirement for millions of people.”
Read: 81% of U.S. employees concerned about retirement readiness amid inflation: survey
In addition, 76 per cent of respondents said they’re concerned about social security’s ability to provide full benefits for life, with 43 per cent saying they’re extremely or very concerned. About a third (35 per cent) said they expect to rely ‘a lot’ on social security to cover expenses in retirement.
“Our study shows many people are deeply concerned about their ability to save for retirement and maintain financial stability in the years ahead,” said Jason Bickler, co-head of individual markets at Global Atlantic, in the release. “We must prioritize innovation and developing effective strategies that can give people the tools they need to achieve financial security.”
The survey also found that, despite 88 per cent stating the importance of a steady retirement income stream, only 54 per cent believed their investments are adequately protected from market downturns. And while 56 per cent have some pension benefits, 36 per cent said they’re extremely or very concerned about inflation eroding their pension income.
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