Running Out of Money Top Retirement Concern Among Americans

November 29, 2011 (PLANSPONSOR.com) – Thirty-one percent of Americans say running out of money is their top concern in retirement, according to the 2011 Franklin Templeton Retirement Income Strategies and Expectations (RISE) survey. 

The survey also found 47% of respondents would keep working if they were unable to retire as planned.  The next most pressing retirement concern was healthcare experiences (27%) and changes to Social Security that could lead to a reduction or delay in benefits (15%).

Top concerns in retirement varied by age range. Among those 65 or older, medical expenses (29%) and Social Security (22%) topped the list of concerns, followed by running out of money (19%). More than three-quarters (78%) of 35-34-year-olds are concerned about managing their retirement income to meet retirement expenses. This percentage decreased, yet was still a majority for younger age groups: 25-to 34-year-olds at 68%, and 18- to 24-year-olds at 59%.

Survey data also showed that while 41% of 35- to 44-year-old respondents are invested in a workplace retirement plan, one-third (34%) of respondents in that age group said they haven't thought about their approach to employing different sources of retirement income, and less than a quarter (23%) currently work with a financial adviser.

A quarter (25%) of respondents between the ages of 18 and 24 plan to rely on Social Security as a primary means of income during retirement, and 26% believe a workplace retirement fund, such as a 401(k) or 403(b), will provide the most income during their retirement.