The Society of Actuaries (SOA) just released a survey showing that nearly half (48%) of Americans ages 45 to 70 have no financial plans in place to protect themselves against outliving their assets and the rising cost of health care should they live longer than they expected. Additional findings show more than one-third are worried about running out of money during retirement, but only 20% plan to purchase an annuity or other form of guaranteed lifetime income to protect their assets. Many Baby Boomers are finding themselves unprepared to maintain their lifestyle in retirement. They see the potential problem but are taking no action. The survey found that nearly three-quarters (71%) of respondents plan to claim Social Security before the age of 70.
The SOA said it cannot stress enough the importance of having a plan in place that addresses all of the risks individuals may face in retirement, such as spending available assets too soon, meeting financial care needs, paying for the rising cost of health care and adjusting financially to the loss of a spouse.
The SOA survey found that 75% of Americans ages 45-70 protect their tangible assets, such as their homes, through home or renter’s insurance; however, only 19% plan to insure the extra costs of disability and well-being by purchasing long-term care insurance. These findings reinforce my belief in the importance of working with professional agents and financial advisors who can guide people in their decision-making process. Many people are not aware of these problems until their agent or advisor educates them as to their needs and the affordable solutions to the problems.
Take action today while your health is good and the price tag for solving your planning problems is reasonable.