Nearly two-thirds, 65 percent, of Americans are confident they will save enough to retire comfortably, but many are concerned about health care costs, according to a new survey from Kiplinger’s Personal Finance.
The survey, done in conjunction with wealth management company Personal Capital, revealed that 39 percent are somewhat confident and 26 percent are very optimistic that they will save enough for retirement. About 22 percent say their biggest concern is about high health care costs in retirement, while 18 percent are worried about not having enough money to live comfortably. Further, 16 percent are concerned about running out of money altogether.
“Health costs represent a growing concern among aging Americans—which is why it’s crucial to begin saving for retirement well in advance,” Mark Solheim, editor of Kiplinger’s Personal Finance, said. “Saving as much as possible today ensures a comfortable and secure retirement tomorrow. Our poll shows a promising trend: By and large, Americans are prioritizing retirement planning. Most are stashing a respectable chunk of their income in savings, and nearly three-fourths have a long-term financial plan.”
Additionally, 85 percent of respondents under age 50—and 67 percent of those over 50—expect to work full time as long as possible before retiring.
Fifty-four percent said they are confident that Social Security will provide the income they expect, while 72 percent with a mortgage expect to pay it off by retirement. Further, 34 percent said they are considering relocating during retirement to have lower taxes, lower cost of living, and a warmer climate.
The average American has saved $327,090 for retirement. Men think they will need a $985,920 for retirement, while women said they would need $828,360. It also found that younger Americans are actively preparing for retirement by contributing the maximum to their workplace retirement plan, among other investments.
“It’s encouraging to see so many Americans prioritizing retirement savings and working with a professional to build long-term financial plans,” Jay Shah, CEO of Personal Capital, said. “Yet, fewer than 50 percent of those polled said they also had a withdrawal plan – a critical and often overlooked part of planning for retirement. We recently added a new tool to our digital Retirement Planner that gives people more clarity around which accounts to withdraw from and when in order to confidently maximize retirement income.”
The poll was conducted in November 2018. It surveyed investors between the ages of 35 and 64, equally divided between men and women.