A New Report Shows 67% of People in Their Mid-50s Are Worried Sick About Running Out of Money in Retirement
A recent study by Prudential paints a scary picture for folks nearing retirement age. It turns out that almost 7 out of 10 people who are 55 years old are seriously unprepared for their golden years. They’re terrified they’ll burn through their savings and end up in a tough spot financially.
The study also looked at people who are 65 and 75, and found that most of them are in the same boat. These older folks might become what the insurance company calls “silver squatters” – retirees who have to rely on their families for a place to live and money to get by.
Well-known money expert from CNBC, Sharon Epperson, points out that people are living longer these days. This means their retirement savings have to stretch further than they thought. “Everyone’s talking about how living longer affects the economy and people’s wallets, especially when it comes to retirement money,” she explained.
Here’s something that might surprise you: a lot of these soon-to-be retirees haven’t even talked to their families about possibly needing help. Epperson says, “This could come as a shock to younger people. The study found that about half of the 55-year-olds who think they’ll need support in retirement haven’t brought it up with their families yet.”
Epperson chatted with Rob Falzon, a big shot at the insurance company, to get the scoop on their findings. Falzon made an interesting point: “You don’t usually think about the generation that’s been taking care of their parents and kids suddenly needing help themselves.”
Epperson noted that many older Americans are struggling because everything’s getting more expensive, houses cost a fortune, and they’re still taking care of their aging parents. But there’s still hope to turn things around.
“At 55, they’ve still got ten years,” Falzon says. “There’s time to do something about it. If there’s a bright side, it’s that knowing about these challenges now can lead to action. They can avoid ending up as silver squatters.”
Falzon thinks it’s crucial to help people figure out how much money they’ll need to feel secure in retirement. This could help close the gap between what people have saved and what they’ll actually need.
The study revealed some other worrying facts about older folks’ money troubles. About 35% of 55-year-olds say they couldn’t come up with $400 in a month if they had an emergency. That’s compared to 19% of 65-year-olds and 15% of 75-year-olds.
Dylan Tyson, who’s in charge of retirement strategies at the insurance company, says, “People turning 55 have a chance to rethink retirement and protect their future. They can use new tools to grow their nest egg safely and make sure they have a steady income for life. As retirement changes from the old pension system, we need to work together to prepare for longer, better retirements.”
The study shows that 55-year-olds face big money challenges, but it’s not too late to fix things. Talking to a financial expert can help you make a solid plan for retirement. Taking action now can help you have a more comfortable future without money worries.
