A recent survey of investors conducted by UBS Wealth Management Americas may leave some surprised. The results of this study found that more people are worried about the costs of a life without long term care planning than those that are concerned about their retirement funds. This is not reflected in the way that many financial advisors work - with the goal of a solid retirement plan in mind.
Several questions were asked of investors for the survey. The major question inquired about worries that the respondents had in regards to their personal finances. At least five answers were provided, each of them to be ranked according to worry by the investors. According to the results, the top concern was being able to afford healthcare in old age with 26 percent of investors stating that they were highly worried.
Next in line was the financial status of children or grandchildren with 18 percent of responders citing it as a high fear. Third and fourth places went to a major health problem occurring to a member of the family and having someone to provide care in old age with 17 and 16 percent, respectively. In fifth place was the worry of having enough set aside in a retirement fund, eliciting extreme worry from 14 percent of the survey takers.
Elderly individuals in Massachusetts are likely concerned about such details themselves, especially since they are already in old age. According to UBS, younger respondents were more likely to be concerned about the costs of healthcare in old age. Some believe this is because they are watching their parents and grandparents struggle with the costs of long term care.
Though respondents seemed less concerned about retirement than other factors, retirement planning is still considered crucial as many use the funds they have collected to pay for the expenses of long term care. This does pose the problem of an unexpected medical need draining the retirement fund though.
Source: On Wall Street, "Investors Worry More About Long-Term Care Than Retirement Planning: UBS," Donald Jay Korn, Jan. 28, 2013