Getting a financial future sorted can be an important part of a long-term budgeting and investing strategy. However, there may be many expenses that some individuals don’t expect after they retire, and these could prove to be pitfalls.
Approximately 60 percent of those who have not yet retired noted that they are afraid of how health care costs will alter their plans to retire, according to a report from Nationwide Financial. This was 30 percent higher than last year.
Close to 75 percent of those who are planning to retire said they are most worried about health care costs once they reach the time where working is no longer necessary, the report explained. Despite this, more than 60 percent have not brought up these concerns with a financial professional.
Some people have spoken to a knowledgeable person about these issues, but the right questions may not have been asked. The report said that less than one-quarter of Americans addressed health care concerns, but just ones that would be covered through a Medicare policy.
These issues are contributing to fears that retirement isn’t going to happen for some. The report noted that more than one-quarter of baby boomers are not confident they will retire, which was higher than last year, when 22 percent said the same.
This issue differs between genders, as well. More than 35 percent of women are not confident they will retire, the report added. Nearly one-fifth explained they feel the same way.
Injuries, illness worry many Americans
Getting sick or hurt is something that many people worry about, not only for their health, but also for their wallet.
Close to 60 percent of Americans with jobs would be able to live without work for only three months or less if they were injured, according to a report from Cigna. Nearly 30 percent explained that they would be unable to deal without pay for more than one month.
“Voluntary benefits are an important and growing part of many employers’ overall benefits package, and many of these products can offer financial protection against the unforeseen,” said Mike Witwer, vice president for the voluntary benefits business at Cigna. “The survey shows that many workers are worried about the financial burden of a serious illness or injury or being without a paycheck because of one.”