Archive for the ‘Ameriprise’ Category

Americans Nearing Retirement Are Very Concerned About Health Care Costs, but Few Are Taking Financial Action to Prepare

December 2, 2014 Comments off

Americans Nearing Retirement Are Very Concerned About Health Care Costs, but Few Are Taking Financial Action to Prepare
Source: Ameriprise Financial

The overwhelming majority (86%) of baby boomers express concern about the affordability of health care in retirement, but very few pre-retirees admit they have taken financial steps to prepare for health care costs in retirement, according to a study released today by Ameriprise Financial (NYSE: AMP). The Health, Wealth and RetirementSM study, which surveyed more than 1,000 employed baby boomers ages 50-64 who are preparing for retirement with at least $100,000 in investable assets, asked these individuals about their attitudes toward health, health care costs and the impact each may have in retirement.

When asked what they’ve done to prepare for funding healthcare costs in retirement, only one in five (19%) surveyed say they’ve taken one or more steps to prepare. One-fourth (26%) have reviewed their options but have taken no action and another two in five (40%) have thought about it but haven’t looked into it in detail. Unfortunately, 15% of respondents haven’t begun to consider how they will cover health care costs in retirement.

Ameriprise Survey Shows Retirement Savings Derailed by More Than Just the Recession; Financial Impacts are Measurable

May 16, 2013 Comments off

Ameriprise Survey Shows Retirement Savings Derailed by More Than Just the Recession; Financial Impacts are Measurable

Source: Ameriprise

Countless studies have shown that many Baby Boomers don’t believe they have enough savings to live comfortably in retirement, but why are so many financially unprepared? Data from the Retirement DerailersSM survey, released today by Ameriprise Financial (NYSE: AMP), helps answer the questions many have about the retirement crisis in America.

The Retirement DerailersSM survey found that the vast majority (90%) of Americans ages 50-70 with $100,000 or more in investable and retirement assets have experienced at least one “derailer” – an economic or life event that has made an impact on their retirement savings goals. The average respondent experienced four of these events, which range from derailers that are beyond their control such as the effects of the recession, to family and lifestyle choices that have lasting financial consequences. In the end, these events set respondents back $117,000 on average. In fact, nearly two in five of the respondents (37%) experienced five or more unanticipated events costing them approximately $144,000.

Unexpected expenses come in all shapes and sizes both before and during retirement, but there are a few that rose to the top. The top three most cited derailers are, not surprisingly, related to the recession. Nearly two-thirds (63%) of respondents say low interest rates impacted the growth of their investments. More than half (55%) say their savings were significantly lowered due to market declines and one-third (33%) admit their home equity is now not going to help fund retirement as much as they expected.

Still, many respondents experienced life events that derailed their retirement. One in four (23%) are supporting a grown child or grandchild and just as many (23%) say their pension plan is not worth as much as they’d thought or has been discontinued. What’s more, one in five respondents’ retirement goals have been thrown off track due to making bad investments (22%), taking social security before retirement age (19%) and/or experiencing a job loss (18%).

While it appears that Boomers have found a way to “make it work” in the short-term as they weather these unexpected derailers, they may not have the ability to be as resilient after they leave the workforce. Only 33 percent of respondents say they are extremely or very confident they would be able to afford an unexpected expense such as large home repairs in retirement.

Money Across Generations II study

March 31, 2012 Comments off

Money Across Generations II study
Source: Ameriprise

Our new study reveals that families today are as uncomfortable talking about finances, healthcare and retirement as they are talking about family issues, religion and politics.

+ Full Report (PDF)

Some related “Conversation Guides” are also available for download here (PDFs).


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