“Retirees Come Face To Face With Longevity,” Advisor Magazine
“This year’s Retirement Confidence Survey (RCS) finds only a third of retirees very confident in their ability to live comfortably throughout retirement (32 percent). While this is comparable to last year, retiree confidence in having enough money to cover basic expenses and medical expenses has dropped: 80 percent say they are very/somewhat confident about covering basic expenses this year compared to 85 percent in 2017; and 70 percent say they are very/somewhat confident about covering medical expenses this year vs. 77 percent in 2017. In addition, retirees’ confidence that Medicare and Social Security will continue to provide benefits equal to what retirees receive today has significantly declined compared to last year, with fewer than half saying they are very or somewhat confident (46 percent very or somewhat confident in Medicare this year vs. 52 percent in 2017; 45 percent very or somewhat confident in Social Security vs. 51 percent in 2017). Only 7 percent of retirees say they are very confident that each of these will continue to provide the same level of benefits they do today. This is the 28th annual RCS by the nonpartisan Employee Benefit Research Institute (EBRI) and research firm Greenwald & Associates. It is the longest-running survey of its kind in the nation, exploring the retirement outlook of both workers and retirees.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Ironically, declining retiree confidence in their ability to cover general and health care expenses and their plummeting confidence in Social Security and Medicare are good things. Maybe they’re finally beginning to wake up to what lies inevitably and immediately ahead. Maybe more will turn to private insurance before it’s too late.