Tags: Retire | save | affluent | money

Merrill Edge Report: Even Affluent Americans Fear Running Out of Retirement Money

By    |   Tuesday, 27 May 2014 09:07 AM

Many Americans are determined to have their cake and eat it, too, in their golden years. A new survey shows even those with significant savings are scared of going broke in retirement, but most are not willing to save more now for the future.

The Bank of America's Merrill Edge Report found that 55 percent of the 1,000 reasonably affluent Americans surveyed, defined as individuals with $50,000 to $250,000 in investable assets, excluding real estate, fear running short of money in retirement.

However, the report noted, many are not willing to cut back on discretionary spending despite their fear — 33 percent would not curtail entertainment to save more, 30 percent would not trim dining out and 28 percent were not willing to cancel a vacation. More women than men were reluctant to reduce spending for dining out, clothing and technology

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In fact, having money to live "in the here and now" is a more popular priority (63 percent) than is saving for the future (48 percent).

Approximately 90 percent of the respondents had retirement savings, which they began collecting at an average age of 33.

Other top fears among the moneyed group included losing their job (37 percent) and gaining weight (25 percent), the survey found.

Moreover, while 89 percent said they have set a household budge, 66 percent said they were unable to live within that budget.

Asked what they would do if they won a million dollars, only 19 percent would be willing to put the winnings toward their retirement, while 34 percent said they would pay off large debt.

A recent Gallup survey found the average age at which U.S. retirees report retiring is 62, the highest the polling firm has found since first asking Americans the question in 1991

In comparison, the average retirement age was 57 in both 1991 and 1993, while from 2002 through 2012, the average retirement age hovered around 60.

"Retirement age may be increasing because many baby boomers are reluctant to retire," Gallup concluded. "Older Americans may also be delaying retirement because of lost savings during the Great Recession or because of insufficient savings even before the economic downturn."

Most Americans expect to have multiple sources of retirement income when they stop work, according to U.S. News & World Report. Those sources include Social Security, savings and, increasingly, a part-time job.

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Many Americans are determined to have their cake and eat it, too, in their golden years. A new survey shows even those with significant savings are scared of going broke in retirement, but most are not willing to save more now for the future.
Retire, save, affluent, money
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2014-07-27
Tuesday, 27 May 2014 09:07 AM
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