When communicating with employees about the need to plan for retirement, it helps to know what concerns they have about their retirement finances. A new survey* offers insight into what worries older workers (age 45 and over). Some of the retirement issues that concern preretirees are:
- Paying for long-term care (69%)
- The effect of inflation on savings (69%)
- Paying for health care (67%)
- Maintaining a reasonable standard of living (63%)
- Depleting all of their savings (62%)
Many preretirees hold debt, such as mortgages (52%), credit card balances (48%), and car loans (40%). It’s not surprising then that 56% state that debt has negatively affected how much they are able to save each month for retirement.
What steps are preretirees taking to prepare for the future? Most (90%) say they’re saving or plan to save as much as they can, 88% are either eliminating or plan to eliminate their consumer debt, and 81% have cut back on or plan reductions in spending.
* 2015 Risks and Process of Retirement Survey, Society of Actuaries, 2016