The Indexed Annuity Leadership Council says these are the top things Americans worry about when they imagine retirement:
- Running out of money.
- Health care costs.
- Maintaining a decent standard of living.
One reason Americans express so much anxiety about retirement is that they haven’t done much planning for it. The survey says 1 in 4 baby boomers — the age group that includes those closest to retirement, as well as the newly-retired — has less than $5,000 set aside for their post-working years. A quarter of the population overall has no money saved for retirement.
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Conquering our fears
Obviously, the way to lower the retirement fear factor is for more people to save — and for those who are saving to save more.
Access to a workplace retirement savings plan immediately boosts a person’s chances of building up a nest egg. Starting 10 years ago, legislation made it possible for employers to enroll their workers automatically in a company plan without express consent. (People have the right to opt out of the plan.)
My family has relied on workplace plans. My husband and I both contributed to a 401(k) when we were offered the chance. Then, while he was working but I was not, I stopped saving for retirement. If I had this to do all over again, obviously I would have put something aside — even $100 a month in a low-fee IRA would have been helpful. Meanwhile, he set aside about $10,000 a year. The minute I had a new job with a 401(k), I started to save again.
Slimmer, post-contribution paychecks are a hurdle for many people. About half of workers say cost of living and daily expenses top the list of reasons they don’t save for retirement, or don’t save more. Many say they could save $25 a week more than they currently save, according to data from the Employee Benefit Research Institute in Washington, D.C.
How are my husband and I feeling now that we are both saving? Still nervous, but less afraid.
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Want to weigh in on saving with or without a 401(k)? Talk to me on Twitter: @jill_cornfield.
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