Americans are worried that
they might not have enough money for retirement, as health care costs
rise and inflation erodes the value of their savings, according to a
survey released Monday.
The study sponsored by the Society of Actuaries, a professional
organization based in Illinois, found widespread economic insecurity
among retirees and those approaching retirement.
About 57 percent of those already retired and 63 percent of those
near retirement age said they were concerned that the value of their
savings wouldn't keep up with inflation. And just over half of retirees
and 69 percent of pre-retirees fretted that they wouldn't have enough
money to pay for adequate health care.
Actuaries calculate how long people are likely to live, what kind of
health or nursing care they might need, and how much money might be
required to pay living and medical expenses. They emphasize that many
people are not financially prepared for life after they stop working.
"As an actuary, I wish people had been more concerned, because they
probably aren't as concerned as they ought to be," said Chicago
consultant Anna Rappaport, who chaired the committee that commissioned
the report.
According to the society, the life expectancy for a 65-year-old man is 17 years and for a woman it's 20 years.
"Some of these people are going to live a very long time. Their
money is going to get used up quicker than they expect. They're not
worried enough," Rappaport said.
Women who outlive their husbands are at special risk, she said,
noting that 40 percent of widows live almost exclusively on Social
Security.