From COVID-19 to climate change, Americans are worried. And for retirees, anxiety peaks once it hits their wallet.
Recently, Personal Capital and Kiplinger Personal Finance surveyed nearly 800 elderly Americans and asked them about their biggest financial concerns. The average age of the respondents was 65, 76% of them are retired, and the rest are planning to retire in five years.
The good news is that 75% of survey respondents say they are confident of having enough income to live comfortably throughout retirement despite the pandemic.
The bad news is that this optimism has not erased their fears. These people are still worried – a lot. And 2021 has brought them a new major financial scare, as healthcare costs are no longer the first.
Here are the financial concerns that keep most of these retirees and retirees on the alert right now.
5. Recession in the next year or two
Respondents who cited this as a major concern: 62%
Over the past fifteen years, Americans have experienced two severe recessions. So, it’s no surprise that nearly two-thirds of survey respondents worry that another downturn is imminent.
The best way to overcome your fears is to confront them. So, check out Money Talks News founder Stacey Johnson’s podcast “How to Prepare for the Next Recession or Market Crash.”
4. Medicare Financial Strength
Respondents who cited this as a major concern: 67%
Most of us have heard that Medicare money is running out. While some argue that Medicare’s potential demise is overstated, there is widespread agreement that the federal health insurance program that serves people 65 and older faces significant financial challenges.
Whatever the truth, many retirees worry that Medicare is on shaky ground.
3. The financial strength of social security
Respondents who cited this as a major concern: 71%
Social Security also faces significant financial hurdles, and nearly three-quarters of retirees are concerned about the financial health of the federal retirement program.
Concerns about Social Security don’t end there. Many older Americans struggle to determine the best time to claim their benefits. If you need help, Social Security Options, Money Talks News partner, offers low-cost expert assistance.
2. The cost of health care
Respondents who cited this as a major concern: 74%
Most of us need more healthcare services as we age. With the cost of care rising, retirees are more concerned than ever about their ability to foot the bill.
Wondering how much you will need to pay for medical services? An average retired couple in 2021 will spend a total of $300,000 on health care over the course of their retirement, Fidelity Investments predicts.
1. High rates of inflation
Respondents who cited this as a major concern: 77%
After decades of modest inflation, retirees now face the prospect of much higher prices. Many experts believe that the recent trend of rising costs is temporary. Others are not sure.
You cannot control the direction of prices, but you have the ability to increase your income so that you can handle inflation better. For tips on bringing in more cash, check out “21 Ways Retirees Can Bring in Extra Cash in 2021.”
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