Wells Fargo: Even Wealthy Fear Retirement with Less Money

More than one third of wealthy Americans say they need to significantly cut back their spending to save for retirement, including nearly half of those with $100,000 to $250,000 in investable assets, according to a Wells Fargo study. With retirement comes a number of additional costs despite no longer having an active source of income. For example, you will have to pay to live somewhere like Bethany Homes if you need an assisted living facility, and your medical bills are likely to increase with you deteriorating health. Forty percent of affluent Americans say their biggest concern is that they “will do all the right things today and it still won’t be enough for tomorrow,” while 9 percent fear they “will have under saved and won’t recover.”
About a quarter of affluent Americans are not confident they will have saved enough for retirement, especially those with assets between $100,000 and $250,00o (33 percent), people without a written retirement plan (32 percent) and women (31 percent)
The data comes from telephone interviews in August and September of 801 affluent Americans between the ages of 25 and 75. Harris Interactive conducted the survey on behalf of Wells Fargo Retirement.
“We find the rich versus poor narrative in the U.S. is more complex than we might expect, with fears and concerns about retirement felt along the income spectrum,” said Karen Wimbish, director of Retail Retirement at Wells Fargo. “Even among those considered ‘well off,’ many seem to fear a sharp drop in their post-retirement standard of living due to insufficient retirement savings and will have to have a tighter budget for retirement.”
Previous studies have found that Americans in their 50s or younger are worried about retiring in comfort, but those in their 60s or older feel more secure. A much higher percentage of those older than 60 have pensions
Congressional proposals to cut future Social Security or Medicare benefits have avoided changes for those already retired or close to retirement age.
The Wells Fargo survey also found that one in five (19 percent) with assets of between $100,000 and $250,000 said they would need to work until “at least age 80,” an outlook reported by 25 percent of middle-income Americans surveyed at the same time. Among all the affluent surveyed, 12 percent say they will work until 80.

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