Most Retired Americans Unsure How Long Savings Will Last, Survey Finds
A new survey reveals a significant majority of retired Americans – 62% – are uncertain about how long their retirement savings will last, as rising costs and economic anxieties loom large.
The survey, commissioned by asset management firm Schroders, indicates that while 40% of retirees feel confident in their financial security, 45% report that their expenses in retirement are higher than anticipated. Compounding these concerns, nearly 20% of Americans aged 65 and over have re-entered the workforce, according to the Bureau of Labor Statistics, potentially signaling financial strain for some. This uncertainty comes as many Americans are re-evaluating their retirement plans amid persistent inflation.
Key worries among retirees center on the erosion of savings due to inflation, with 92% expressing concern. Healthcare costs are also a major factor, with 86% worried about exceeding expectations, and 80% fear a significant market downturn. “Rising prices on essentials like housing, food and health care have significantly diminished the purchasing power and financial security of retirees,” stated Deb Boyden, head of U.S. defined contributions at Schroders. Many retirees are also struggling with how to best manage their withdrawals; 71% are unsure of an optimal spending strategy, and 70% fear outliving their money. For more information on retirement planning, consider exploring resources from the Social Security Administration.
The survey also found that 84% of retirees wish they had better protection against inflation’s impact on their savings, and a substantial portion – 25% – report losing sleep over financial worries. Fidelity Investments estimates that a 65-year-old retiring in 2025 can expect to spend an average of $172,500 on healthcare and medical expenses throughout retirement, a 4% increase from the previous year. Financial advisors can provide personalized guidance, and resources like Moneywise’s retirement planning section offer helpful insights.
Officials at Schroders suggest exploring inflation-resistant assets and flexible withdrawal strategies to mitigate these risks, and encourage retirees to seek professional financial advice.
