More than three-quarters of Americans say inflation is affecting their ability to save enough money for retirement, including long-term care payments, according to a new survey.
Longevity and high inflation exacerbate retirement savings challenges for 77% of Americans, according to an online survey of adults conducted in March by financial services firm DA Davidson & Co. . This is up from 64% of adults surveyed in April 2022.
Participants’ top concerns were living longer with medical and long-term care payments (45%) and fear of losing independence (26%).
Their concerns may not be off the mark.
A recent analysis by the National Council on Aging and the LeadingAge LTSS Center @UMass Boston found that 80% of older adults do not have the financial resources to receive four years of nursing home care or two years or more of nursing home care. Is not …
The NCOA analysis found that declining longevity and savings were exacerbated by inflation, rising health care costs, and the fact that a person turning 65 today is 70% more likely to need long-term services and support in retirement. are believed to contribute to the security crisis of lifetime.
According to a DA Davidson & Co. survey, approximately 63% of respondents expect to live to at least 80 years, and 27% expect to live 90 years or more. Younger generations increasingly expect to live to 100, with 14% of Gen Z, 15% of millennials, 12% of Gen X and 9% of baby boomers.
Baby boomers are more concerned about losing independence (34%) compared to Gen X (21%), Millennials (20%) and Gen Z (25%).
“With declining pensions and uncertain social security, the responsibility for achieving a secure retirement rests largely with individuals,” Andrew Crowell, vice chairman of wealth management, said in a statement.
Unprepared to prevent financial fraud
Financial fraud is another concern of adults as they get older, according to DA Davidson & Co. research.
As the population ages and more time is spent in retirement, only a third (33%) of Americans say they are very confident in their ability to detect attempts at personal financial fraud. They were less confident in their ability to realize that a loved one might be a victim of financial fraud (24%).
One in five Americans (22%) identify themselves as victims of financial fraud, and 24% say a loved one has been the victim of financial fraud.
Seniors will lose $1 billion to fraud in 2021, according to a report released last fall by the U.S. Federal Trade Commission. Business spoofing hurts seniors the most, with $151 million in 2021, a 134% increase from 2020. Investment fraud cost him $147 million, up 213% year-over-year. In 2021, government fraud cost seniors $122 million, up 108% from 2020.