Americans of all ages are more worried about future health care costs and their finances than they are about death, according to a recent online survey by TD Ameritrade.
Completed by Harris Poll on behalf of TD Ameritrade, the survey “Redefining Aging” asked about 2,000 Americans over the age of 18 for their thoughts on aging perceptions, aspirations and retirement.
As for general concerns about getting older, declining health was the top fear Americans had in regards to aging, with the biggest concerns being losing mental and physical functions, which were tied at 58%. These fears were followed closely by health care costs at 43%. Death was at 26%.
Michael Daley, the product marketing manager for HealthView Services & HealthyCapital, told RMD earlier this month that home equity is a crucial piece of the equation when planning for in-retirement health expenses.
“The fact that much of one’s wealth may be tied into their home leads directly to two solutions often implemented to cover health costs: equity loans and reverse mortgages,” he said.
And its not just health-care costs that prompted fears. Respondents did not feel they had adequately prepared for their post-working life finances.
“Seventy-two percent do not believe Social Security will cover their spending; 60% have/had no idea how much to save for life beyond 65; 51% do not believe they’ll have more than enough to cover their needs,” according to the survey.
With these financial concerns in mind, more than 82% of respondents said they expect the retirement age to increase in the coming 10 years as people work to maintain longer lifespans.
Respondents had a variety of reasons for why they feel people will work longer, but the overwhelming majority — 74% — said it was because they needed to save more. Thirty-seven percent said they would work longer to be able to qualify for social security, and 23% said it was to qualify for Medicaid. Others said they were afraid of getting bored, or they needed to take care of their kids or parents.
While 50% would like to retire by age 60, only 33% expect that they will be able to do this.