Going broke in retirement is the leading fear among OC residents
New research from Merrill Edge shows that going broke in retirement is the number one fear for many Orange County residents – beating out other stress-inducing situations. Yet, despite the prospect of not having enough money to live on later in life, more of Orange County’s mass affluent — those individuals with $50,000 to $250,000 in investable assets — prioritize living comfortably today over saving more for the future. In trying to understand how the growing group of mass affluent Americans weigh finances against other concerns, the report suggests that running out of cash in retirement far exceeds many common fears such as flying in an airplane, losing one’s job, and weight gain. However, fear doesn’t seem to be driving behavior change. It turns out that the main trigger to get people to save/invest Orange County for retirement is pretty simple – offer them a 401k.
The report also found that:
- 86 percent of Orange County respondents have financial commitments that have competed with their retirement savings, such as unexpected expenses, servicing big debts and paying for a child’s college education.
- Many in the Western region won’t consider cutting back on indulgences such as spending on themselves (63 percent), eating out (49 percent) and vacations (43 percent).
- About one in two of the mass affluent in the nation say financial stability is an attractive quality when considering a mate, while others are more likely to be drawn to an appealing sense of humor, money saved or a stable job.