Yet, when it comes to developing a retirement savings goal, only one-fifth (21%) of middle-income retirees and preretirees calculated a monthly retirement income goal number; only one in ten (13%) determined a total savings goal number to reach, according to the latest study released by the Bankers Life and Casualty Company Center For A Secure Retirement (CSR).
The CSR study finds more than half of middle-income Boomers (55%) have saved less than $100,000 for retirement. Nearly two-thirds (62%) of middle-income preretirees report some level of anxiety about retirement; one in four (28%) report being “anxious” or “very anxious.”
Declining health is the number one longevity concern for respondents—nearly four times the concern about inadequate retirement savings (10%) or outliving their money (9%).
To compensate for the possibility of outliving their savings, middle-income Americans plan to:
- Reduce spending (63%);
- Get a part-time job in retirement (41%);
- Sell house (25%);
- Give less money to children/grandchildren (24%); and
- Do nothing (15%).
The good news is that the majority of today’s middle-income Americans are living within their budget. According to the CSR study, seven out of ten (70%) report living comfortably within their budget; only one in ten (9%) admit to living beyond their means.
The Bankers Life and Casualty Company Center for a Secure Retirement’s study, “Longevity Risk and Reward for Middle-Income Americans,” was conducted in November 2012 among a nationwide sample of 500 Americans ages 55 to 75 who have annual household incomes between $25,000 and $75,000 by the independent research firm The Boomer Project. The full report can be viewed at CenterForASecureRetirement.com.