Young people have plenty on their plate when it comes to financial strategies for the future. This can be due to savings, spending plans and even programs for retirement and financial protection. These individuals may want to keep in mind the issues that some of the older members of the population currently have, as avoiding these mistakes could help improve the chances of living comfortably.
More than half of senior citizens have life insurance policies that lapsed during their lifetime, according to a report conducted by ICR for Lifeline. Another four-fifths of this group explained they had no idea it was possible to be paid cash for a life insurance policy.
“The results indicate that a large segment of the senior population allows their life insurance policies to lapse and receive nothing in return,” said William Scott Page, president and CEO of The Lifeline Program. “We have always known that lapse rates were high, but this new data proves that hundreds of thousands of seniors who are eligible for life settlements are not taking advantage of the financial option.”
Nearly one-quarter of those polled explained that when they initially bought a life insurance policy, it was for a different reason than what is needed at the current moment, the report noted. Much of this is due to concerns about their need to afford medical bills later in life, as 40 percent of respondents explained this.
Many feel retirement still attainable
Even with worries about financial pitfalls later in life, there are many young people who have confidence they will retire comfortably. However, the level of preparedness they have is another matter.
Nearly 70 percent of Americans noted that they feel “emotionally positive” when they think about the concept of retirement, according to a report from Ameriprise Financial. Another 47 percent explained they have a “happy” feeling when considering this.
“Feeling confident about retirement is essential, but perhaps not as important as taking steps to financially prepare for that retirement,” said Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial. “Positive feelings supported by strong savings habits and careful planning are something to be proud of.”
Despite this, there are still some issues that need to be resolved. Only 19 percent of those surveyed noted that they are confident in their retirement preparation, the report explained. Less than 30 percent think they will accomplish their retirement dream.