Despite optimism about a longer life span and the opportunities that may bring, most respondents to a TD Ameritrade survey are not confident they are preparing for retirement correctly.
While half of the respondents would like to retire by 60, just 33% expect to do so, primarily due to the need to save more (74%).
Nearly three-quarters (72%) indicated they do not believe Social Security will cover their spending in retirement. In addition, six in 10 have or had no idea how much to save for life beyond 65 (the survey included those retired and those not yet retired); and 51% said they do not believe they’ll have more than enough money to cover their needs in retirement.
Those surveyed said they worry more about the health care costs and finances (43 and 35%, respectively) related to growing old than death (26%).
Asked how to prepare for a longer life span, 68% said reduce expenses to save more, while 53% said save more for retirement. Three in 10 replied “increasing income outside of job,” including 44% of Millennials, and 18% said “shifting to higher return/risk assets.”The report of survey results is here.