Boomers’ worst fear: Outliving their savings
For many, retirement not a pleasant idea
We once thought of retirement as a time to relax, play golf and maybe travel — to finally have a little fun. For some, that will still be the case.
For others, the thought of retirement brings anxiety: They’re worried that they’ll run out of money.
In a recent survey by the Transamerica Center for Retirement Studies, 44 percent of workers of all ages cited having insufficient finances as their biggest fear.
And a quarter of middleclass Americans said they “get depressed” thinking about their finances during retirement, according to a Wells Fargo Middle Class Retirement survey. Fortyeight percent of those who have not retired were not confident that they will have saved enough to live “the lifestyle they want” in retirement.
“I don’t know that there is anyone who doesn’t have that fear,” says Kevin Leahy, chief executive of Connecticut Wealth Management. “Our clients tend to be very successful. Most of them have a low probability of running out of money. Yet they have that fear.”
Thomas West, senior associate at Signature Estate & Investment Advisors outside Washington, says it is the overwhelming fear among baby boomers.
“Sometimes, the uncertainties of how long someone is going to live can be overwhelming, and the thought of health-care costs can be overwhelming,” West says.
The best way to feel better about retirement is to develop a plan, financial advisers say. Mussio says that involves discussions of withdrawal rates from retirement savings and longevity.
“Then you will understand exactly where you stand,” says Bob Gavlak, adviser with Strategic Wealth Partners in Columbus, Ohio. “Rather than sit there and think, ‘Will I have enough money?’ or ‘I’ll probably have enough,’ have a set plan in place. Take it from ‘I think I’m OK’ to ‘I know I’m OK.’ ’’
“What I try to do is get them engaged in taking some action and not be a bystander to their own retirement future,” West says.
Stephen DeCesare, president of DeCesare Retirement Specialists in Marlton, New Jersey, also says that fixed annuities are a good strategy if you are worried about running out of money. “A fixed annuity with a cost-of-living increase will give you steady income,” he says.
Which brings us to the people who really are in danger of running out of money because they haven’t saved enough. Tim McGrath, founder of Riverpoint Wealth Management in Chicago, says he sometimes recommends that the client work an extra year or have a part-time job during retirement. “That makes a difference,” he says.
Spurring riverfront interest is Bass Pro’s new $105-million-plus tourist attraction, which includes a massive sporting goods store, bowling alley, restaurants, natural science museum and 30th-floor lookout. It is expected to draw 1 to 2 million visitors each year, a crowd that could spill outside