5 top retirement headlines to show you’re not prepared

A growing heap of evidence shows most of us are not prepared for retirement. Whether you are planning for your own late-life care or thinking about your employees, these five articles highlight critical issues.

Americans Unprepared to Live to Life Expectancy (from PlanSponsor)

Findings revealed that slightly more than half of Americans surveyed (56%) feel financially prepared to live to the age of 75. Less than half (46%) indicated that they feel financially prepared to live to the age of 85, and only one-third (36%) said they feel prepared to live to age 95.

Investors Admit to Not Saving Enough for Retirement (from PlanSponsor)

Seventy-two percent of respondents between ages 18 and 34 believe they are not putting enough money towards retirement. The percentages dropped as the age of the respondents increased, with less than half of respondents (47%) 65 and older indicating they are not saving enough.

Should You Purchase Long-Term-Care Insurance?(from Wall Street Journal)

Being financially ready for the possibility that you will require long-term care is an important part of retirement planning. But too many people are still preparing merely by hoping for the best.

For anyone 65 and older, the odds are not in your favor. Statistics show 70% of those who reach 65 will need long-term care. With long-term care costing as much as $250 a day, it doesn’t take long to completely deplete a lifetime of savings—even if you’re “lucky” enough to only need it for a relatively short period of time.

Investor Education Program Increased Workplace Plan Participation (from PlanSponsor)

“Investor Education in Your Workplace” (IEiYW), a project of the non-profit Investor Protection Institute (IPI) with support provided through the Investor Protection Trust (IPT), and carried out jointly with state securities agencies and the National Credit Union Foundation (NCUF), is a 10-week online training program.

Results among nearly 8,500 employees in Pennsylvania, North Carolina and Wisconsin included:

  • Up to 50% increases in short- and long-term saving and investing activities;
  • Up to 40% improvement in investment knowledge measured through pre- and post-testing;
  • Up to 50% improvement in participant attitudes and behaviors including increased financial well-being, setting investment goals, implementing a budget, and starting/increasing contributions to 401(k), IRA or equivalent plans;
  • Over 80% of participants completed the entire 10-week program; and
  • 96% said they would like to participate in additional programs.

Retiree Health-Care Costs Surge (from Wall Street Journal)

The out-of-pocket estimate is based on the average life expectancy for a 65-year-old—82 for the husband and 85 for the wife.

But many people live longer: That 65-year-old couple may well need more than $240,000. And that figure doesn’t include long-term care, over-the-counter medications or most dental care.

No wonder almost half of Americans who were close to retirement and had more than $250,000 in household assets said they were “terrified” about health-care costs, according to a recent survey by Harris Interactive HPOL -5.41% for Nationwide Financial.

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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