Americans have one big worry which exceeds all others. This is the prospect of retirement costs. Americans worry about whether they can cover their pharmaceutical and medical bills. As per an annual survey conducted by Franklin Templeton Investments, medical and other related expenses are a concern for about 31 percent of total people polled. The total number of respondents in this particular survey was 2002. All individuals were above 18 years of age. Other than retirement costs, the list of other worries includes freedom from debt and paying for the assisted living care. About 18 percent of respondents worry about the former and 15 percent worry about the latter.
No idea about paying for retirement expenses
Even with such concerns, about 46 percent of the respondents of the survey said they have no idea of how they can pay for medical retirement costs. Health savings accounts are not made by 76 percent of the respondents. This happened as they do not enjoy access to any account or they have one but not using it. Although retirement experts promote HSAs for triple tax benefits, the concerned person must give a high deductible quality health plan to enjoy such an account. The list of tax benefits includes money invested in pre-tax and it grows tax-free. The money can also be withdrawn tax-free if needed for duly qualified medical expenses.
A distinct generational split exists when it comes to tackling retirement confidence. The genders were also divided on this issue. As per results of the survey, millennial men, who incidentally are the furthest from retirement, were discovered to show more concern when it comes to market volatility in the short term. They are less concerned about not meeting the financial goals in the longer term. Women of Generation X were found to be the least confident in matters of their ability to manage retirement money in an effective manner so that they can pay the bills.
In short, almost 50 percent of the respondents in the survey have no idea about how they will pay for own medical care post-retirement. This carelessness exists even though all the parties know it is an extremely important concern. The Millennial men's major cause of worry is the volatility of short-term markets. For the women, there is a constant worry whether the money will cover the retirement expenses. The survey was conducted in January.