More than one-quarter (28%) of Americans say high medical expenses are their biggest financial worry about retirement.
A Bankrate.com survey report reveals the highest-income households (over $75,000 per year) are even more concerned about high medical expenses than the overall population. The second biggest worry is running out of money, which is the greatest fear for Millennials, followed by not being able to afford daily expenses (18%) and having too much debt (11%).
The report reveals that while 29% of Americans are satisfied with the amount they are currently saving, others express regret for not being able to save more. One-third say they cannot save more for retirement because they have just enough money for their day-to-day expenses, while 14% point to family obligations and 10% blame their student loan debt. Millennials were more than twice as likely as any other age group to blame their student loan debt for hampering retirement savings.
Regarding their future expectations, Americans are realistic about Social Security’s role in their retirements. Sheyna Steiner, senior investing analyst at Bankrate.com, explains the average Social Security payout is only around $15,000 per year. Despite this, survey results show 13% of Americans expect Social Security payments to account for all or most of their retirement income. Another 14% expect it to account for half of their retirement income, and about one-fourth believe they will not get anything from Social Security. “People are realistic to think they’ll need to supplement that income,” adds Steiner.
The survey was conducted by Princeton Survey Research Associates International (PSRAI) through telephone interviews with 1,003 adults in the U.S. The complete report is available here.