Americans Worry About Retirement Savings Shortfall: Survey

Forty-seven percent of all retirees said that their expenses in retirement are higher than they expected, and 49% believed that Medicare would cover more of their health care expenses. On average, retirees reported spending 14% of their total monthly income on health care costs, including insurance premiums, out-of-pocket expenses and prescription costs.  

Fifty-eight percent of retired respondents admitted that they have no idea how long their savings will last, and 63% wished that they had done more planning before retiring.

Dream or Nightmare?

When asked to describe their financial situation in retirement, respondents gave varied responses: 

4% said they are “living the dream”
44% are “comfortable”
34% purported to be “not great but not bad”
15% are struggling
4% said they are “living the nightmare”

Across all retirees, 38% reported that they are using a pension plan to generate income in retirement, compared with 22% who are using a 401(k), 403(b) or 457 plan. And 34% are using their spouse’s pension plan, versus 24% who are using their spouse’s 401(k), 403(b) or 457 plan.

“The corporate pension plans that are being relied upon by today’s retirees may not be there for all retirees in future generations,” Boyden said. “This shift in how Americans will be meeting their expenses in retirement moving forward underscores the urgency for bolder actions from retirement savers, plan sponsors and asset managers.”