According to a recent study, approximately 1 in 4 Americans say they are worried about money on a daily basis.
Why Being Worried About Money is So Common
Baby boomers say that their biggest financial challenge is (or was) planning for retirement. Many say that they are worried about being in debt forever, never being able to fully retire and living paycheck to paycheck their entire lives.
It’s clear that today’s seniors are less confident about having enough money for a comfortable retirement.
Before the recent economical struggles many older workers anticipated a retirement in which they would be able to live off their Social Security and the interest generated by their investments.
But the economy tanked, and Federal Reserve lowered rates to near zero. This then wiped away many people’s plans for retirement income.
Being Unprepared Has a Domino Effect
Today, many of those same people remain financially unprepared for retirement. In a 2012 study, 30% of workers reported that they had less than $1,000 in savings and investments and 56% of workers report that they had not attempted to calculate how much money they would need for a comfortable retirement.
To make up for their lack of saving for the future, many workers plan to save more money later, postpone retirement or continue to work after they retire from their primary job. In other words, retirement may not live up to expectation and may be full of financial struggle from day one.
Retirees Have More Options
On a positive note, a new study finds that among those already retired, 39% say they are very confident of a financially secure retirement. This is more than double the amount of people from just three years ago when the economy was still struggling.
Perhaps this is also thanks to the fact that baby boomers can breathe easier because of the options available to them.
For instance, more and more financial advisors are discovering the usefulness of resources such as the reverse mortgage as a line of credit. It’s a wonderful hedge against inflation that gives borrowers future borrowing power, allowing them to live comfortably despite lack of retirement preparation. This financial resource along with strategic financial planning is showing to be a lifesaver for many.