3 Big Retirement Fears Driving Workers To Delay
Unless you invested in property in the 1980s like some sort of young real estate prodigy, you may have some reservations -- or even fears -- about retirement. Getting bombarded with financial advice about saving more and investing wiser, all while you have your pockets turned inside out to see if you have enough for a sandwich, doesn't help bolster confidence in your future either.
If you're considering putting off retirement, for practicality or necessity, you're far from the only one. Various reports show roughly 80% of American workers have considered delaying retirement for financial reasons, and the majority are more scared of going broke in retirement than they are of death. That's pretty grim.
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So why exactly are so many workers afraid to retire? Here are some top reasons workers today are downright panicked about the prospect of retiring.
1. Uncertainty Around Retirement Income and Lifestyle
The main reason workers have more panic attacks than retirement plans is they won't be able to live their best life on the retirement budget they were able to scrounge together. Or, as Victoria Ratliff on "The White Lotus" put it: "I just don't think at this age, I'm meant to live an uncomfortable life."
For many retirees, income shifts or becomes more fixed, which is scary when you've become accustomed to a certain lifestyle. Outside of caviar wishes and champagne dreams, having to adjust to a way of living that doesn't afford you the same luxuries that you're used to can be very jarring, especially later in life.
2. Loss of Purpose and Daily Structure
Many people derive a sense of purpose from their work and their routine. With retirement, the life associated with working is suddenly taken away. Who are you if you can't give your business card to someone that has the answers to that question?
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Many people nearing retirement feel like they don't have a lot of hobbies or friendships outside of work, and will struggle to find that same sense of purpose they found when they were working. However, traveling for fun and relaxing for free could be your new lifestyle choice, and that doesn't sound so bad.
3. Rising Healthcare Costs and Longevity Risk
The rising cost of long-term care, or healthcare in general, can leave many people shaking in their boots about whether or not their nest egg will cover medical expenses. (Although, they should really stop shaking, as they could twist an ankle, and that's just another deductible they'll have to meet.)
Even if you have a lot of money stored away, it's hard to determine if it will cover you for the rest of your life, and how long that will be. So many people are afraid to retire simply because of how much their healthcare will cost.
According to Fidelity’s 2025 Retiree Health Care Cost Estimate, the average 65-year-old couple will spend $12,850 during just their first year of retirement. With figures like that, medical costs alone could wipe out their savings within years -- maybe even less.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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