Earning a solid financial future can be crucial to reaching retirement comfortably. However, getting there can be difficult for some, and there may be hurdles in the way of success.
Only 23 percent of individuals at least 50 years old noted that they would be ready for retirement if they ended up with a health issue, or their spouse had a similar ailment, according to a report from Bank of America Merrill Lynch. Meanwhile, although 31 percent of those polled explained their biggest concern related to retirement was running out of money, the same percentage noted that they had concerns about being dependent on family members to the point where it would be burdensome. Even with this in mind, two-thirds of those who are 50 years of age and older said they haven’t looked at options to not live with family members if they were unable to be on their own.
“Proactive discussions and coordination with family members can be the difference between smooth sailing and significant hardship when confronting financial challenges leading up to and through retirement,” said David Tyrie, head of retirement and personal wealth solutions for Bank of America Merrill Lynch. “Although many of these topics can be difficult to discuss, there is a clear benefit to having family conversations and planning ahead. We help our clients prepare for and work through such important issues, so that their families’ needs are addressed and their goals can still be achieved.”
Long-term care needs may become important
Those Americans who are heading toward retirement may need to take a thorough look at how they see their future. Some types of care may be needed, and it could be a good idea to account for that.
More than 40 percent of Americans explained they are not completely certain how to deal with long-term care prospects, or they just don’t think they will even bring up the issue.
Close to one-fifth of those polled are taking care of a person, or they did this in the past, the report noted. Nearly 70 percent of Americans who have provided care to someone explained they already looked at prospects to take care of themselves when they are older. Another 22 percent said that they are more certain of their later life plans than they were previously.