Researchers said that after about ten years of retirement, more than 70 percent of people who retired at age 65 in these generations would run short on funds. In the highest quartile, the number decreased to about two percent who would run short on funds within a decade. It rose to seven percent for the third and about 20 percent for the second. Researchers said that with these predictions of income shortfalls, health care and nursing home expenses were factored in. With these factors taken into account, the percentage of people in the lowest quartile is higher than the combined percentage of the two highest quartiles likely to need more funds.
After gathering these findings and analyzing them, researchers point out that people who are in the lowest income bracket are extremely vulnerable. With the possibility of not only running out of funds but running out quickly, people who are in this category should be concerned and take steps to enhance their retirement preparedness. People in all categories will find themselves at risk, and each person's likelihood depends not only on current financial status but also health status. Not all health issues are predictable, and what exists now may be complicated later. Some people may need extra funds for health care. Even if health facilities for skilled nursing care will pay 100 percent of costs, some households will still run out of money far before they should. Reviewing retirement plans and accounts is an important task that should be completed every year. Update options as needed, and take into account any long-term changes in health conditions. To learn more about options, discuss concerns with a HALO insurance agent, 314-351-HALO (4256).