A recent study shows one of the most common reasons for people to express regret over their financial planning. When presented with objective data about longevity, many people self-report higher levels of financial regret.
The new study completed by the National Bureau of Economic Research found that approximately 60% of survey respondents say they have regrets over not saving enough during their working years. When people were confronted with realistic longevity data about how long they may need to live off their savings and retirement, people’s regret more than doubled, especially around not purchasing lifetime income or long term care coverage.
Setting aside savings is not just about having a basic emergency fund or making sure that you follow the 4% rule or have an expected amount of after tax income in retirement. It’s about thinking of the goals that you want to achieve in retirement and planning to move forward. Thinking about the possibility of needing long term care support may involve working directly with a financial planner, your estate planning lawyer or even your insurance agent.
This gives you a broad perspective over the different ways that you can potentially solve long term care costs challenges. It is expected that the cost of long term care will continue to rise, and more people will need long term care in the future likely for longer than they originally anticipate. Working with your financial team of experts will help you look at all possible avenues for setting aside additional savings or purchasing products that can help you transition into this part of life.