Financial security eludes many Americans

By BenefitsPro

By Paula Aven Gladych

More than half of Americans believe they are less financially secure than they thought they’d be at this point in their lives, a Northwestern Mutual study has found.

Fifty-six percent believe they are financially prepared to live to the age of 75, but 10 percent expect to work into their 80s.

According to the study by Northwestern, “Planning & Progress 2013—Retirement and Longevity,” most pre-retirees say they expect to retire at 68 even though the mean retirement age among those already retired is 59.

Ninety-four percent of Americans expect to retire in their 60s or older, with 42 percent of those expecting to retire in their 70s or 80s.

According to the research, there’s a 50 percent chance that a 65-year-old man today will live beyond the age of 87 and that a 65-year-old woman will live beyond the age of 90. If they’re married, there’s a 50 percent chance that one of them will live beyond age 94.

Only 43 percent of Americans believe they are financially secure and 32 percent do not feel financially secure. Northwestern’s study defined financial security as a feeling of confidence that you will achieve the financial goals you have for yourself or your family through the actions you are currently taking.

Who are the most financially insecure? According to the study, 62 percent of single Americans say they are less secure than they thought they’d be by now, compared to 43 percent of married people who say the same.

Those with children under age 18 are less financially secure now compared to where they thought they’d be, whereas those with older children or no children feel slightly more secure.

Generation Y and Generation X are less secure now than they thought they’d be, but the mature generation is more likely to say they are just where they thought they’d be or are more secure than they thought they’d be.

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