Well-Off Retirees “Hoarding Cash Out of Fear”
By TLB Contributing Author: Sally Phillips
There is a common belief that this is a golden age for retirees, as Americans reach retirement age with better health, more disposable income and more ways to spend it. Yet while this has always been a moot point among less wealthy seniors, it seems that even the richest are holding on to their cash amid concerns over what the future will bring.
These are the findings of a study carried out by financial planners at United Income. As a result, retirees are living too frugally, missing out on what should be an enjoyable retirement and passing away with savings and investments piled up. According to the study, many who have not taken out insurance earlier are unaware of the available policy options in later life, and see this stockpiling of cash as their only option.
The study clearly shows that despite the media hype, retirees tend to get steadily wealthier as they get older. It demonstrates that a retiree who dies in his or her 60s leaves an average legacy of $256,000, while those that live into their 70s leave on average $313,000.
However, it seems that as the years go by, retirees become less confident in the economy and those who control it, and are consequently less optimistic about their own financial well being. Could it really be as simple as us becoming “bigger worriers” as we get older, though?
There are other possible factors, in that some retirees do not wish to spend money on leisure and travel, and prefer to settle for a slower pace of life. Others could be hedging against living into their 90s and beyond, when they might have significantly higher healthcare costs.
Remaining confident in retirement
Whatever the reason, there are clear signs that a large proportion of retirees are not enjoying the retirement for which they have worked so hard, and at the same time are constraining the broader economic growth within a variety of sectors that their spending could bring.
The fact is that while the 21st century is full of uncertainty, it also provides more choice, flexibility and opportunity for retirees. Perhaps the best advice is for every retiree to sit down at least once with an independent financial adviser to make sure they manage their finances for the optimum enjoyment as well as peace of mind.
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About the Author: Sally Phillips is an avid researcher, author and concerned citizen, who feels it is her mission to make people aware of the facts behind the many concerning issues they face today in their daily lives.
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