Retirement tops death and divorce as biggest fear for employees: Study

A recent survey reveals that more than six out of ten employees in the United States fear retirement more than death, divorce, or even getting fired. This startling statistic sheds light on the growing financial anxieties within the workforce, with many Americans deeply concerned about their financial security in their later years.

According to a LiveCareer poll of 1,031 employees, an overwhelming 82% of respondents are considering delaying their retirement due to financial reasons. The survey, which highlights the fears and uncertainties surrounding retirement, shows that 92% of employees worry they will have to work longer than planned. These findings indicate a widespread fear of retirement, with 61% of respondents expressing greater anxiety about retirement than death, 64% fearing it more than divorce, and 54% more than getting fired.

The root of this fear is clear: financial instability. Many workers are concerned that they will not have enough savings to maintain their desired lifestyle in retirement or to cover unexpected expenses, particularly medical emergencies. As Jasmine Escalera, a career expert at LiveCareer, explains, "Our survey reveals that financial stability is a primary concern among participants, with many fearing they won't be able to afford to retire and keep up with the bare essentials like healthcare, or that they might become a financial burden to their loved ones."

The survey highlights a range of financial concerns that contribute to the fear of retirement. For instance, 59% of employees are worried about the rising cost of long-term care in retirement, while 52% fear making poor investment decisions that could deplete their retirement funds. Other significant concerns include:

• Feeling disconnected from society (48%)
• Struggling to adapt to a new routine or lifestyle (46%)
• Maintaining the desired standard of living in retirement (45%)
• Potential shifts in government benefits (44%)
• Insecurity about the stability of their investments (41%)
• Medical expenses (41%)
• Inflation (30%)

These statistics reflect a pervasive sense of unease about the financial realities of retirement. For many workers, the prospect of losing their financial independence and becoming a burden on their families is a significant source of stress.

One of the primary drivers of retirement anxiety is the rising cost of living, particularly when it comes to healthcare and long-term care. As medical expenses continue to climb, many employees worry that their retirement savings will not be sufficient to cover these costs. This concern is exacerbated by the fear of inflation, which can erode the purchasing power of retirement funds over time.

In addition to healthcare costs, many employees are also worried about the potential instability of their investments. With economic uncertainty and market volatility, workers fear that their retirement savings could be significantly reduced by poor investment decisions or unexpected downturns. This fear is particularly pronounced among those who are unfamiliar with investment strategies or who lack confidence in their ability to manage their retirement funds effectively.

The findings of the LiveCareer survey underscore the importance of retirement planning and financial literacy. As Escalera points out, "Workers should take proactive steps to fully understand their employers' retirement and financial planning services. This includes knowing the difference between 401(k) and Roth accounts, understanding company match programs, and taking advantage of free financial advice and planning benefits."

By taking these steps, employees can better prepare for the financial and personal impacts of retirement. Understanding the various retirement savings options and how to maximize them is crucial for ensuring financial security in later years. For example, taking full advantage of employer match programs can significantly boost retirement savings, while understanding the tax implications of different retirement accounts can help employees make more informed decisions.

In addition to financial planning, employees should also consider the personal aspects of retirement, such as how they will spend their time and stay connected with their communities. Retirement represents a significant lifestyle change, and many workers fear feeling disconnected or struggling to adapt to a new routine. Planning for these changes and finding ways to stay engaged and active can help ease the transition into retirement.

The survey highlights a critical need for greater awareness and education around retirement planning. Many employees may not fully understand the options available to them or may not be taking full advantage of the resources provided by their employers. By increasing awareness and providing access to financial planning tools and advice, employers can help reduce the fear and anxiety that many workers feel about retirement.

Moreover, as the survey suggests, there is a need for a broader conversation about the financial challenges of retirement. With more employees expressing fears about their ability to retire comfortably, it is clear that more needs to be done to address these concerns. This could include policy changes at the national level, such as reforms to Social Security or Medicare, as well as initiatives at the company level to provide more robust retirement benefits and support.