Retirement Nightmares Overshadow 81% of Americans’ Plans

American workers are uncertain if they will be able to realize a comfortable retirement and of those workers, 81% are worried about their retirement preparedness, according to the latest COUNTRY Financial Security Index.

One-third of retired Americans report that something is holding them back from experiencing the retirement of their dreams. On the flip side, 67% of retirees are satisfied with their current retirement, according to the index.

The areas that American workers are most worried about during retirement include running out of money, not having the money to pay for things they want to do and not being able to afford medical and or long-term care expenses.


“We found that money issues are driving dissatisfaction in retirement among the third of Americans who report being unhappy,” says Joe Buhrmann, manager of financial security at COUNTRY Financial. “Many retirees underestimate the cost of their basic living expenses in retirement, and as a consequence spend more of their nest egg just to get by. We also see that some current retirees do not have enough to afford the things they want to do in retirement.”

Four out of 10 workers say that not having enough savings will be what derails their retirement dreams, whereas 28% worry about the loss of an income earner and 18% live in fear of another recession, the index states.

Workers still have hope for an enjoyable retirement though with most looking forward to traveling more, working less and having more time to spend with loved ones.

“Of those who aren’t living their dream retirement, 57 percent say it’s because they don’t have enough money for the things they would like to do,” Buhrmann says. “For those approaching retirement, it’s important to understand your living expenses first to make sure you are also saving enough to afford additional costs, such as travel.”

Written by Alana Stramowski

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  • This article written by Alana is the reason our product is more valuable than ever for a retirement planning tool.

    The reason workers are concerned about having enough money for retirement is because many those 62 years of age or older have been hurt with loses in their present retirement plans, many have lost their jobs and their earning have not increased with inflation

    Look around us, see what prices are of food, utilities, home upkeep, entertainment, clothing and just about everything else. Our Federal Government want’s to make us think we are doing well, just look at the percentage of our growth rate over the past 8 years, pathetic!

    Not only that, look at social security increases each year, they are getting smaller, in fact, no increase at all for 2016!

    Yes, Many retirees have underestimated the cost of their basic living expenses. Because of this, many retirees have spent more of their nest egg just to get by.

    We can provide a greatly needed service for so many senior homeowners, we need to get out there, educate them and show them how a HECM can improve their quality of retirement tremendously!

    John A. Smaldone

    • John,

      There is a tremendous difference between a product that supplies cash and one which can also be used as a financial tool. Fixed rate Standards provided cash; they were not a tool. If you needed essentially all of the proceeds to pay off an existing mortgage or were profoundly astute in money matters, the closed end HECM was probably sufficient.

      But if you wanted a product that could help you limit your exposure to the ravages of interest rates and ongoing MIP, while at the same time increasing the money available to you in a reliably monthly manner, then the open end HECM should have been the loan of choice. It can do all that the closed end HECM can and far more.

      It is not negative financial events or circumstances that make a HECM a valuable financial tool but rather what one can still do with it after closing. So some HECMs are more valuable than others as to their capabilities in helping a senior reach their retirement goals. All the fixed rate HECM is good for after closing is keeping the interest rate stable, payoffs, and being able to keep the loan active without periodic payments of interest and principal. Yet with an adjustable rate HECM with its line of credit, that is where things begin, except a stable note interest rate.

      Neither growing costs nor a lack of income or cash flow have anything to do with the value of the adjustable rate HECM as a financial tool.

      Sadly the financial tool aspect of an adjustable rate HECM is still one of its most misunderstood and underutilized aspects. That is because there needs to be sufficient proceeds available (eliminating the majority of borrowers) to work with a financial planner in employing those proceeds to their best, highest, and lowest cost use. Most HECM originators try to walk that walk but fail miserably in the process; they not only lack the gift but the training, skill, experience, and formal training needed to guide the senior much beyond closing.

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