NEW YORK (MainStreet) The number of U.S. adults who aren't confident in their ability to fund a decent retirement is at the lowest level since 1990, the Washington, D.C-based Economic Research Benefits Institute says.
Of particular concern to baby boomers the U.S. demographic nearing its golden years is their ability to pay for health care. AsIn EBRI's 2013 Retirement Confidence Survey, released last month, says:
Confidence about other financial aspects of retirement reached record lows in 2013, continuing the decline from highs recorded in 2007. In particular, increases are seen in the percentage of workers not at all confident about their ability to pay for basic expenses (16%, up from 12% in 2011 but statistically equivalent to 13% in 2012). Larger concerns were medical expenses (cited by 29%, up from 24% in 2012), and long-term care expenses (39%, up from 34% in 2012).
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To rally the cause of 50- and 60-somethings, and to give younger workers a heads-up on long-term medical care costs, Ameriprise Advisor Group has some tips and strategies that can help mitigate health care payout risks in retirement.
Plan for the "what-ifs." According to data from EBRI, nearly three in 10 retirees (28%) are doubtful they would be able to come up with $2,000 for an unexpected need. Reducing your debt and saving as much as you are able before you retire is the simplest way to prepare for any unanticipated expenses medical or otherwise in (or before) retirement.
Be realistic. Many boomers aim to retire before the traditional retirement age, but one of the biggest challenges in retiring early is paying for health care without insurance through an employer and before Medicare benefits kick in. There are several options to help bridge this gap, but a health crisis during these years can affect your retirement income long term, so determine how you will afford health care during this period well before you near your planned retirement age.