Live Long and Face Financial Hardship?Live Long and Face Financial Hardship?
Running out of savings in retirement is a real concern for many Americans, according to a Wells Fargo report, but coaching clients to have the right mindset can help.
Old age may be a curse, say U.S. workers. Thirty-eight percent of American workers older than 20 say it would be a financial “hardship” to live past the age of 85 years old, according to a Wells Fargo report. Despite the challenges, most workers expect that they’ll see their 85th birthday and 42 percent predicting they’ll live even longer.
Among surveyed workers, those with a “planning mindset” were more at ease with their situation than those without the right mindset, said Wells Fargo. A planning mindset is a set of attitudes and behaviors that includes setting and working towards financial goals, as well as saving for retirement now instead of waiting until later. This particular mindset meant participants were 42 percent less likely to have high levels of financial stress and 3.1 times more retirement savings than those without, according to the report.
“People expect a retirement that could last 20 to 35 years, and our survey represents a call to action to help them prepare for this new stage in their lives,” said Fredrik Axsater, head of strategic business segments for Well Fargo Asset Management. “There is a strong likelihood that retirees will live longer than they expect.”
Having the right frame of mind is helpful for alleviating worries about running out of money in their golden years: just 27 percent of workers with a planning mindset see living to aged 85 or longer as a financial hardship.
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