North Carolina residents fret over retirement plans, rising health care costs
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While some North Carolinians feel good about their retirement plans, others express uncertainty about their financial future.
- Across the country the story is the same: A new Axios-Ipsos poll shows many Americans say they are unprepared for retirement, unsure how to prepare and unsure if they even want to fully retire.
Why it matters: Fewer workers have access to reliable pensions, writes Axios' Felix Salmon.
- Most Americans retiring now are the first generation to instead rely primarily on private savings, like 401(k) plans and IRAs, to navigate the financial vortex once they age out of work.
State of play: The Axios-Ipsos poll revealed a few startling numbers:
- One in 5 say they don't think they ever will retire.
- Just 36% of people 55 and older — nearing typical retirement age — say they'll be able to at the time they expected.
By the numbers: 30% of people still in the workforce plan to use a pension, compared with 54% of retirees who say they're using pension money.
- On top of that, "roughly half the workforce, we’re talking 50 plus million people, work for an employer that doesn’t offer a retirement plan," David John, a senior policy adviser at AARP, tells Axios. That could mean a small business or gig work.
Zoom in: Many of the North Carolina respondents of our recent survey said they felt reasonably confident, based on years of aggressive savings or pensions from their work.
- But several still expressed concerns about market volatility and whether their money will last as they age and spend more on health care or, if necessary, long-term care.
- A semi-private room at a nursing facility in the Raleigh area costs about $7,000 a month without insurance, according to one survey. That's expected to jump to nearly $10,000 a month over the next decade.
Beth Y., of Durham, said her pension covers roughly 64% of her previous salary and comes with paid health insurance. But she still started a second career after retiring due to concerns over future health care needs.
- "I worry about the possibility of needing long term care down the road and the costs of that," she said.
"It’s hard to know if you have enough," said Pat S., of Fairview, near Asheville. "It depends on your health, how long you may live and market conditions that impact retirement savings."
Others noted that they have decided to change their lifestyles to make their retirements stretch further.
- "My budget and income is significantly less than when I worked (and was paying for kids' college) but it is enough for me," said John. K, of Raleigh. "While I am not spending money like I used to, I also have less need to — since I am not working, eating out, commuting and my kids are now independent."
- "We'll have to scale back in some areas," said Stuart W., of Belmont, "but not having to sweat going to work will more than make up for it."