Why are Americans Afraid to Retire?

Why are Americans Afraid to Retire?
09 Nov 2016

It’s pretty clear Americans are neither confident nor prepared for retirement. There are countless studies and polls to illustrate this. But why is this? Here are a few reasons:

– Women are more financially fragile than they used to be.
Overall debt for women has doubled in their 50’s since the early 1990’s, while the percentage of 50-something women with less than $25,000 has doubled according to a recent survey from George Washington University.

– Social Security has not kept up with real cost of living expenses.
2017 had a small raise of 0.3 percent -about $5 per recipient. If your money does not go up and we have any inflation it must go down in purchasing power.

– Retirees need $130,000 to cover health care costs
This does not include Long term Care expenses, including home health care or nursing homes. Many retirees are one health care crisis from financial collapse according to a study by LIMRA.

– Half on Americans are afraid they will outlive their money.
Financial stress for living long is a concern especially with cognitive impairments that occur as we age.

– The majority of Americans plan to work during retirement
According to Bankrate.com seventy percent of non-retired Americans plan to work as long as they can during retirement.

There are many other reasons why Americans fear retirement. Remember the sooner you plan and prepare the better off you should be in reducing these fears.

Good luck! Jeff


Jeffrey Johnston

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.