Over 67% of Americans say they are concerned with country’s current events and their financial future. This was reported in the latest report by Country Financial Security Index.The report also revealed that over half of Americans aren’t saving for their retirement, and are worried about affording retirement altogether.
The report also revealed that over 32 percent of Americans worry that they will not be able to afford retirement and might delay their retirement in the future. The main point to take away form this report is that over half of Americans fail to include retirement in their long-term financial goals. A study by The State of American Retirement pointed out that nearly half of families have no retirement savings accounts at all.
The tendency to prioritize short-term financial gols will result in effecting long term financial needs. The report further added that the main reason for people failing to give importance to long term financial goals is due to increase in healthcare costs, vacations and unexpected expenses. Over 41% felt that the rise in healthcare cost as the mean reason for postponing retirement plan, while 44 percent attributed unexpected expenses and 36 percent felt vacations took priority over long term goals.
Financial experts recommend that we need to allocate over 75 percent of retirment savings to living expenses alone due to inflation and rising costs, this is typically influenced by desired standard of living during retirement period. Further.