The financial strain from rising costs has become unrelenting for many retired Americans.
Retirees say daily expenses are higher than expected, according to a new survey from investment manager Schroders, and nearly 6 in 10 say they don’t know how long their retirement savings will last.
“The affordability crisis is a daily struggle for many retirees,” Deb Boyden, head of US defined contribution at Schroders, told Yahoo Finance. “With nearly half of retirees reporting their expenses are higher than anticipated, it’s clear that many retired without a plan to manage rising costs.”
Read more: How much do you really need to save for retirement?
Health care is taking an especially high toll. Retirees report spending an average of 16% of their monthly income on medical expenses such as insurance premiums and prescriptions. Nearly two-thirds said they expected Medicare to cover many more of those bills.
“Many seniors are already giving up essentials like health care because they can’t keep up with rising costs,” Senior Citizens League CEO Shannon Benton previously told Yahoo Finance.
The survey found that retirees’ top financial concerns are inflation, health care costs, a major market downturn, uncertainty about how to withdraw money from retirement accounts wisely, and a lasting fear that their savings will run out.
Stress is spilling over into your daily life. More than a third fear that financial stress will harm their overall health. Nearly 3 in 10 say money has kept them up at night and they worry about it every day.
Read more: Retirement Planning: A Step-by-Step Guide
When asked to describe their current financial situation, only 4% of retirees said they were “living the dream.” Another 37% said they felt “comfortable,” while 35% described their situation as “not very good, but not bad either.”
“It should be a wake-up call to retired Americans who have no idea how long their savings will last,” Boyden said. “Retirement planning doesn’t end once someone stops working. The real challenge begins afterward: creating a strategy for income, inflation, market volatility and unexpected expenses.”
Kerry Hannon is a senior columnist for Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including “Retirement Bites: A Generation X Guide to Securing Your Financial Future,” “In control at 50+: how to succeed in the new world of work,” and “You’re never too old to get rich.” Follow her on blue sky and unknown.
Subscribe to the newsletter Take care of your money
Click here for the latest personal finance news to help you invest, pay off debt, buy a home, retire, and more.
Read the latest financial and business news from Yahoo Finance