Reaching retirement can be something that many people are worried about, and having a proper personal finance plan in place can aid in easing some of those fears. This may be something that some are getting a handle on, especially older Americans.
Nearly 60 percent of American baby boomers think they will retire by the time they turn 65 years of age, according to a report from Del Webb. This feeling remains despite the median age for retirees being 67 years of age.
“For the first time in what may seem like a lifetime, boomers are transitioning to a new stage in their lives that is filled with zest and personal discovery,” said Fred Ehle, vice president of brand marketing for Del Webb. “They are able to re-evaluate their lives and focus on what is most important to them – which tend to be friends, family and a healthy lifestyle. Once they do so, they optimize every available opportunity to live their ‘new’ lives to its fullest extent.”
Many Americans are motivated to reach retirement for a few reasons. The report noted that 62 percent of those polled wanted to take part in hobbies that helped them feel better emotionally and physically. Another 51 percent aimed to spend more time with family, while one-third noted that they had an interest in travel.
Health care costs remain problematic in retirement
Getting to retirement isn’t always easy, as there are potential pitfalls that may not be initially obvious to some people saving for the days they no longer have to work.
Approximately 60 percent of Americans are worried that health care expenses could hurt their retirement aspirations, according to a report from Nationwide Financial. More than one-quarter of those polled said they won’t be able to retire, which is markedly higher than the 22 percent recorded last year.
“Boomers can’t count on the Affordable Care Act or Medicare to pay their long-term care costs in retirement,” said Kevin McGarry, director of the Nationwide Institute at Nationwide Financial. “The first step is to get a fact-based estimate of what those health care and long-term costs may be and work with a financial advisor to build a plan from there.”
More than 35 percent of women noted that they are not confident they will retire, the report added. Another 18 percent of men said the same.