America's #1 Retirement Fear

posted on 06-07-2019

A new survey sheds light on the biggest factor putting a damper on American workers' retirement plans: job insecurity. 

The Employee Benefit Research Institute's 2012 Retirement Confidence Survey showed that job fears have surpassed concerns like paying down debt, making mortgage payments, rising health costs and the shaky economy.  

The Sandwich Generation Effect

American workers -- and boomers in particular -- are feeling what Principal Financial's Greg Burrows calls the "sandwich generation effect." 

"Today workers are increasingly overseeing firsthand the care of their own parents, and friends of the family," Burrows says. "It's become a very real problem for workers."

Compared to 1991, the EBRI finds that more than three times the amount of workers are planning to work past 65 years old, the typical retirement age. Meanwhile nearly half indicate they're afraid they'll need to quit work unexpectedly, due to changes in health, family matters or downsizing/closures at work.  

What You Can Do

Planning is integral, says Burrows, so consider doing the following to pad your nest egg

1. Use retirement calculators.

Workers using these tools tend to save 40% more than those who don't, EBRI finds. And they'll help you understand so much, says Burrows. "They're simple to use, can be used independently and will instantly show where your savings needs are," he adds.  

[Try these InvestingAnswers calculators: Million Dollar Savings Calculator: How Long Do I Need to Save to Become a Millionaire and Million Dollar Savings Calculator: How Much Do I Need to Save to Become a Millionaire?]

2. Plan for the worst. 

Rather than make assumptions about what will happen, pad your emergency fund, actively save in a retirement plan (Burrows recommends saving between 11% and 15% of your paycheck) and "manage the debt side of the ledger," he says.

[InvestingAnswers feature: The Lazy Man's Retirement Portfolio]

And take advantage of your company match if you haven't, it's the easiest way to double your savings.

Jill Krasny is the editor of Your Money at Business Insider

by Christian Hudspeth What's even better than earning rewards for spending on your credit cards? Getting paid hundreds of dollars worth in sign-up bonuses in three months or sooner -- just for tr...
by Christian Hudspeth Tired of dragging credit card debt around with you? Taking 15 minutes to transfer your debt to a credit card with generous balance transfer perks could save you thousands in...
by Christian Hudspeth If you're going to spend money anyway, then why not get paid for it?Whether you're looking for credit cards with up to 6% cash back, double flight miles, or even a free hote...
by Christian HudspethIn times where interest rates are on the rise, you may start hearing financial advisors and bankers sing the praises of an income strategy called "CD laddering" (short for ce...
by Susan Campbell Those of us familiar with selling property know real estate agents don't come cheap. With real estate agent commission and fees amounting to as much as 6% of the sel...
Beverly Harzog is a nationally recognized credit card expert, author, and consumer advocate. She blogs about credit cards at BeverlyHarzog.com. Being in credit card debt is the pits. I've bee...
by Christian Hudspeth If you haven't already felt the pressure to refinance your mortgage, you're probably really feeling it now. Mortgage rates are still hovering near historic lows. But ...
by Christian Hudspeth If you or someone you know is thinking about getting a home mortgage, you may want to know about the thousands of dollars in hidden charges that some lenders are quietly...
by Christian Hudspeth Money market accounts (MMAs) and savings accounts make great places to set aside your emergency fund money and earn some interest income at the same time.Simply put, these s...
by Christian Hudspeth It's true that auto loans and home loans offer attractively-low annual percentage rates (APRs), while credit cards offer borrowing power without the risk of ever seeing the ...
by Christian HudspethWant to keep your emergency fund safe while earning interest yields that are three to five times higher than a typical savings account? Putting your money into an FDIC-insure...
by Christian Hudspeth Question: Hi there. I need your advice. I'm only 19 and I really need to start investing. Where can I start? -- Tirelo M., Gaborone, Botswana Answer: You've defini...