More than half of plan participants worry about having someone to care for them in their old age.
There is nothing universally true about participants in defined contribution plans other than their interest in establishing a retirement fund.
But Spectrem’s most recent study in its DC Market Insights series, Financial Attitudes and Concerns of Retirement Plan Participants, shows that there are some similarities in the personal concerns DC participants have.
For instance, 67 percent of DC plan participants say they are concerned about maintaining their current financial position. That is the personal concern most often selected by plan participants.
That is especially true of participants between the ages of 36 and 49, as 75 percent of participants in that segment said they worry about maintaining their current financial situation. Only 57 percent of those under the age of 36 have that concern currently.
The next most selected concern is “being able to retire when I want to,’’ selected by 59 percent of participants. That included 66 percent of the 36-49 age group but only 46 percent of those under the age of 36, who aren’t yet thinking much about retirement.
Health issues are next up on the list, as 55 percent said they are concerned about the health of their spouse and 53 percent are concerned about their own health.
Tied into the health issue is the thought of what will happen when old age comes around. Fifty-one percent of plan participants are concerned about having someone to care for them in their old age, while 40 percent are concerned about spending their final years in a care facility.
Conversely, 49 percent of plan participants are concerned about the responsibility of taking care of their aging parents.
Education concerns are about 50-50 among plan participants. Fifty percent say they are concerned about financing the education of their children, and 21 percent are old enough to concern themselves with financing the education of their grandchildren.
From the standpoint of getting help from advisors, 39 percent said they worry about getting adequate help and advice to reach their financial goals.
While almost half of plan participants worry about financing education for children, they are less concerned about leaving a large nest egg for their progeny. Only 24 percent said they worry about having enough money to leave to the next generation.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.