Investors Nearing Retirement Concerned About Replacing Income, Health Care Costs, According to New TIAA-CREF Survey

New York, September 18, 2009
Investors approaching retirement are focused on maintaining their standard of living, planning their retirement and paying for health care after they stop working, according to a recent TIAA-CREF Institute Survey.

According to the survey of 1,002 higher education employees, within the past two years, 60 percent of respondents have sought out objective retirement planning advice, 87 percent of respondents said that advice regarding strategies for drawing income to live on in retirement is important to them, with nearly the same number ranking paying for health care as a top concern.

Two-thirds of those surveyed expressed concern about outliving their savings and about choosing the best way to draw income to live on from savings.

The research demonstrates a need for defined contribution plans to include a low-cost annuitization option that can guarantee income to cover basic expenses in retirement.

“After the financial turmoil of the past year we see greater interest in income that workers cannot outlive and related concerns by workers as they size up their retirement security,” said Paul Yakoboski, research fellow at the TIAA-CREF Institute.

The full report can be read here. The TIAA-CREF Institute sponsors objective research and scholarship that enhances understanding of strategic issues related to higher education and lifelong financial security.