Half of Americans say they are worried about the overall state of the economy, and one third of those in the baby boomer age group say they have less than $25,000 for their retirement.
For the last five years, industry research group LIMRA has asked Americans to list their main financial concerns, and every year the top response is: “Having enough money for a comfortable retirement.” In this year’s survey, when asked why this is their number one worry, nearly half of the respondents said that they are anxious about the overall state of the economy and how it may affect their finances in retirement.
"These are legitimate concerns," says LIMRA. "Market volatility, low interest rates, and inflation all can erode a person’s retirement assets. In addition, the possibility of increased taxes, cuts in Social Security and/or Medicare are worrisome – and all outside of a consumer’s control."
LIMRA also notes that many Americans have simply failed to save enough money. "With 7 in 10 pre-retirees reporting that their social security and pensions will not cover their basic living expenses, it is concerning that more than half of Boomers have less than $100,000 saved for retirement and more than a third have less than $25,000 saved for retirement," concludes the report.