Americans' Retirement Fears Revealed

Edward Jones survey shows paying for healthcare as top retirement fear

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Nov 15, 2010, 08:00 ET

ST. LOUIS, Nov. 15, 2010 /PRNewswire/ -- As Americans grapple with how the recent election results, pending legislation, and economic recovery will affect their futures, one thing is certain: they remain fearful of not being able to pay for healthcare costs during retirement.

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In a recent survey from financial services firm Edward Jones, nearly a quarter (23%) of Americans said not being able to pay for healthcare costs in retirement was their top fear, a percentage that has actually decreased over the last four years. In 2006, when Americans were polled on this topic, 30% said paying for healthcare was their greatest fear. The survey also found that 19% of Americans are worried about having to work longer to supplement retirement savings versus 12% in 2006.

Americans between the ages of 55 and 64 are considerably more worried (35%) about not being able to cover healthcare costs than those of lower age brackets but not as worried as those polled in 2006 (43%). Gender also influenced this sentiment, as 27% percent of women indicated that they were most concerned about healthcare costs, while only 19% of men consider this their greatest fear post retirement.

"While the numbers may have changed slightly from the 2006 survey, the concerns remain the same for Americans of all ages," said Joan Fernandez, Principle at Edward Jones. "We don't know the future of healthcare costs and we can't predict the outcome of elections but we do have control over how we plan for retirement. This survey reinforces the need for a solid retirement plan that addresses the issues and fears that Americans have about saving for retirement."

The study of 1,008 respondents, which was conducted by Opinion Research Corporation on behalf of Edward Jones, revealed that a large percentage of Americans also rank "having to work longer to supplement retirement savings" (19%) and "having to rely on others for support" (19%) as major concerns as they approach retirement. Respondents between the ages of 45 and 54 showed the most anxiety (26%) about having to work longer to supplement their retirement savings.

Americans in lower age brackets (24% of 18-24 year olds and 24% of 25-34 year olds) are most concerned about having to rely on others to support them during retirement. Additionally, within these age groups (18% in each age bracket respectively), respondents also indicated that they are more concerned about "not being able to make provisions for family" than those older than the age of 35.

Household income also had a considerable effect on respondents' retirement fears, as Americans with annual incomes between $75,000 and $100,000, indicated that they are most concerned about "having to work longer" (35%) and "having to cut back on a desired lifestyle" (21%). Respondents in lower income brackets are more concerned about "having to rely on others for support" and "not being able to provide for family" after they are gone.

About Edward Jones

Edward Jones provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm's business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm's 12,000-plus financial advisors work directly with nearly 7 million clients to understand their personal goals -- from college savings to retirement -- and create long-term investment solutions that emphasize a well-balanced portfolio and a buy-and-hold strategy. Edward Jones embraces the importance of building long-term, face-to-face relationships with clients, helping them to understand and make sense of the investment options available today.

Edward Jones, which ranked No. 2 on FORTUNE magazine's "100 Best Companies to Work For 2010," is headquartered in St. Louis. The Edward Jones Web site is located at www.edwardjones.com, and its recruiting Web site is www.careers.edwardjones.com. Member SIPC.

* Survey was based on 1,008 telephone interviews of U.S. adults conducted between the dates of October 28-31. The survey was conducted with a 95% confidence level.

SOURCE Edward Jones