9 Issues Making It Harder for Americans to Retire

Respondents who said they feel this is a:

• Major factor making it harder to retire: 56%
• Minor factor making it harder to retire: 31%

Employer-sponsored pensions have largely disappeared from the workplace, at least in the private sector. The burden of saving for retirement is now squarely on the shoulders of workers themselves. A lot of survey respondents lament this trend.

In today’s world, you have to create your own self-financed pension plan. Most people do that by saving in a workplace retirement account, such as a 401(k). And some of these workers actually do better than they would with a traditional pension.

To learn more about how they’ve done it, check out “7 Key Habits of 401(k) and IRA Millionaires.”

4. Middle-class salaries are not increasing

Respondents who said they feel this is a:

• Major factor making it harder to retire: 59%
• Minor factor making it harder to retire: 30%

Many workers find it difficult to convince the boss to give them a raise. Others who are fortunate enough to get a wage hike see it quickly swamped by the rising tide of inflation.

If you feel like you are underpaid, it never hurts to ask for a raise. But before doing so, prepare to negotiate by reading “10 Tips to Remember When Asking for a Raise.”

3. Rising cost of long-term care

Respondents who said they feel this is a:

• Major factor making it harder to retire: 67%
• Minor factor making it harder to retire: 24%

Long-term care costs can quickly crack even a large nest egg. Survey respondents know this, with many worrying about how they will finance such care if they eventually need it.

This is a tricky subject. Some financial experts recommend buying long-term care insurance to protect your finances should you ever need this care. Other experts aren’t so sure. Money Talks News founder Stacy Johnson offers his take in “Should I Buy Long-Term Care Insurance?.”

2. Rising cost of health care in retirement

Respondents who said they feel this is a:

• Major factor making it harder to retire: 73%
• Minor factor making it harder to retire: 21%

A large majority of survey respondents worry about the rising cost of health care and how it will impact their ability to retire. Surprisingly, numerous studies over several years have found that the biggest cost in retirement — by far — is actually housing, which didn’t even make this list. So, give a lot of thought to how you will finance housing costs.

With that out of the way, you can turn to health care costs, which indeed are a burden for many retirees. If you are already in retirement, chances are good that you are on Medicare. To learn more about making this program work for you, check out:

• “Everything You Need to Know About Medicare“
• “5 Medicare Mistakes to Avoid for a Healthy Retirement“

If you are still working and planning for retirement, stuffing money into a health savings account today is a great — and, sadly, overlooked — way to prepare for health care costs in retirement. You need to have a high-deductible health insurance plan to qualify, but if you do, the rewards can be enormous in your golden years.

For more on HSAs, check out “3 Ways a Health Savings Account Can Improve Your Finances.”

1. High inflation

Respondents who said they feel this is a:

• Major factor making it harder to retire: 74%
• Minor factor making it harder to retire: 20%

Inflation is probably the biggest threat to any retiree’s finances. The value of the dollars in your nest egg can drop precipitously if prices steadily rise over a number of years.

Every retiree should worry about inflation and its potential to erode living standards. If today’s rising prices are holding you back from retiring, check out the tips in “How to Control Your Personal Inflation Level.”