OREANDA-NEWS. June 11, 2015. Nearly six in 10 (58 percent) South Florida respondents expect to be stressed about money in retirement based on how they are currently saving, according to a new survey released today by Bank of America and Merrill Edge. The latest Merrill Edge® Report reveals that while non-retirees are anticipating stress, the majority (62 percent) of retirees in the area are not stressed about finances in retirement based on how they saved.

Despite predicting stress, two-thirds of non-retired South Floridians believe they will have enough money in retirement due to how they are saving for it, while the vast majority of retired respondents (87 percent) report that they will have enough money for the rest of retirement because of how they saved for it before they retired.

“Living or retiring in South Florida can be very rewarding, but it can also be very expensive,” said Andrew Wilson, regional sales manager at Merrill Edge. “Being secure in your retirement requires having a firm picture of what your lifestyle will be like, an expert plan to reaching that vision, and a realistic look at your spending and investing options.”

Pursuing an ideal retirement without financial stress

Part of a biannual nationwide survey, the study explores opinions of South Florida residents with investable assets of \\$50,000 to \\$250,000 and finds that balancing today’s pleasures with tomorrow’s treasures continues to be a challenge for South Floridians. When asked about their financial priorities, 62 percent focus on living comfortably for today, while 54 percent are focused on saving more for the future.

Nationally, the Merrill Edge Report finds most non-retired respondents agree that an ideal retirement is one that is not spent worrying about money (77 percent) and is overall stress-free (70 percent). South Florida respondents who have yet to reach retirement are taking action to live stress-free like today’s retirees, but could do more to emulate strategies that retired Americans employed to ensure that their golden years were less worrisome:

  • Today, the most popular actions that non-retired South Florida residents are taking to live a stress-free retirement are funding retirement accounts (52 percent) and paying off debt (51 percent). Contributing to a retirement account (48 percent) and paying off debt (40 percent) were also some of the most common measures that retirees took to reduce strain in retirement before reaching that stage.
  • However, nearly four in 10 (36 percent) area retirees preemptively worked with a financial advisor to be stress-free when they did retire, and only 31 percent of non-retired area respondents are doing this with the same goal in mind.
  • Similarly, only 30 percent of South Floridians who have yet to reach retirement are investing in a non-retirement account to reduce stress; whereas, nearly four in 10 (38 percent) area retirees proactively invested as much as they could outside of a retirement account.

Financial fears lead to positive financial actions

According to the survey, while the majority of non-retired South Florida residents are actively investing for retirement, nearly one-quarter (22 percent) would still be embarrassed if their family and friends knew intimate details of their finances, including retirement savings (10 percent), credit score (8 percent) and checking account balance (7 percent).

Along similar lines, 37 percent of national respondents feel that they lag behind their peers in terms of financial stability, saving for the future or current income. However, these shortfalls also appear to be a catalyst for better financial planning. Area retirees and non-retirees alike have felt motivated to make positive financial decisions due to financial stress (20 percent) and the successes or failures of their parents (19 percent).

South Floridians conveyed this importance with 35 percent of retirees meeting their goals by ensuring a spouse saved or invested (17 percent nationally), and 39 percent of respondents listing providing for others, such as children or an elderly parent, as a financial priority today (30 percent nationally).