Retirement Concerns Decline with Age

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover how retirement concerns lessen with age. Learn the importance of planning for a secure future. Explore safe money alternatives today! With age comes wisdom – and apparently the ability to better handle unexpected expenses, according to the Society of Actuaries (SOA). In their recent study, the SOA analyzed financial risk management across generations . Chief among their findings? That “the ability to handle unforeseen expenses increases with age, peaking with Early Boomers and then declining for the Silent Generation.”  It’s one of many findings according to the study, “ Financial Risk Concerns and Management Across Generations .” The Silent Generation refers to those born between 1925 and 1945. The SOA based its finding on the fact that 6 in 10 Early Boomers say they could afford a $10,000 expense using their savings or emergency funds. Yet “only 46% of Millennials would use their savings, which is not surprising since they have lower assets and more competing financial priorities.” Those in the Silent Generation remain vulnerable. The SOA reports that half of them aren’t able to use their savings for an unexpected $10,000 expense. Financial Risk a Moving Target Financial life inherently carries risk, and these risks continue for a lifetime. It’s a more complicated set of circumstances for those who are retired, as their primary sources of income will change. And, if they failed to plan for the future , retirees may have limited income options. Of course, a single unexpected event could present a challenge to all generations. But retirees, including Baby Boomers and Silent Generation, also face other financially related risks, including “living longer than their financial resources, a major long-term care event , investment and inflation risk, and unexpected medical expenses,” according to the SOA report. Concerned About Medical Costs, But Not Saving for Them Interestingly, Millennials reported the highest concern over having enough money to pay for healthcare in retirement at 69%. Among late Baby Boomers that issue concerns only 62% of respondents and among early Baby Boomers, 53%. The Silent Generation recorded the lowest level of concern at 49%. Still, among all ages, only 3