New Study Says Retirees Are Worried About the Wrong Things
Category: Financial and taxes in retirement
July 6, 2020 — A new study focussed on the financial issues that retirees should really be concerned about, and then it measured what they actually worried about. The results are interesting – it seems like many people are downplaying the risks that should concern them, like how long they will live, and instead concentrating on issues that are less worrisome, such as market risk.
In “How Well Do Retirees Assess the Things They Should Worry About“, the researchers used a host of data from various sources to measure 5 areas of concern for anyone in retirement. Then they ranked those risks in order:
Actual Financial Risks
- Longevity. The worry should be that you will live longer than expected and run out of funds.
Comments on "New Study Says Retirees Are Worried About the Wrong Things"
Elaine C. says:
My main concern is I will outlive my modest IRA. I'm super conservative about spending it. Happily, I like my modest lifestyle and am having fun without spending down my IRA. The stock market is taking care of that for me. Sigh. A friend keeps urging me to take out money to "enjoy my retirement," as if I would be happier buying shoes or marble countertops. No, that's not for me. So far I've been using it for home maintenance. My family tends to live into their 90s, so I approach my longevity with that in mind. The next concern is my health, staying healthy, and doing all those things that I know will help me - none expensive. The market is my next concern, as it is chipping away at my IRA; policy is my fourth concern as I want Social Security to remain solvent; and the last concern is family, as I don't have children. I know there are no guarantees for any of my concerns. I continue to do the best I can for myself in all aspects of my life. Have a great day!
steven diorio says:
What I always say to people when they say you should take out money ''to enjoy my retirement'',..I always say 1)just not having to work is actually quite amazing.2)trust me,..if something was that important to me I would have already bought it,..or experienced it by the time I turned 58.(which is when I retired).
RichPB says:
ElaineC, Bravo! Wise approach! I completely agree with steven diorio.
As far as the markets, we are all basically in the same boat. If they improve long term as expected, we win as long as we stay in. If not, then we are all scr---d. History says the former. Hold the door. Um, I mean, hold the line.
Tom B says:
ElaineC, Like you I'm not taking anything out of my savings, I'm living on my SS and pension. My IRAs have tripled since 2007 even though I'm no longer contributing to them, but I do reinvest the dividends. I have 50% in stocks and 50% in bonds. I used to worry about stock market declines, but after going through the 2000-2003 downturn, and the 2008-2009. I don't worry about it anymore. I know the market will come back and there is no need for me to tap those accounts now.