Americans are worried that they might not have enough money for retirement, as health care costs rise and inflation erodes the value of their savings, according to a survey released Monday.

The study sponsored by the Society of Actuaries, a professional organization based in Illinois, found widespread economic insecurity among retirees and those approaching retirement.

About 57 percent of those already retired and 63 percent of those near retirement age said they were concerned that the value of their savings wouldn't keep up with inflation. And just over half of retirees and 69 percent of pre-retirees fretted that they wouldn't have enough money to pay for adequate health care.

Actuaries calculate how long people are likely to live, what kind of health or nursing care they might need, and how much money might be required to pay living and medical expenses. They emphasize that many people are not financially prepared for life after they stop working.

"As an actuary, I wish people had been more concerned, because they probably aren't as concerned as they ought to be," said Chicago consultant Anna Rappaport, who chaired the committee that commissioned the report.

According to the society, the life expectancy for a 65-year-old man is 17 years and for a woman it's 20 years.

"Some of these people are going to live a very long time. Their money is going to get used up quicker than they expect. They're not worried enough," Rappaport said.
Women who outlive their husbands are at special risk, she said, noting that 40 percent of widows live almost exclusively on Social Security.

The survey found that many people expect to delay retirement or keep working indefinitely. 

Of those still working, 15 percent said they expect to work past 65. Twenty-eight percent said they didn't expect to retire at all, although that number included both people who wanted to work and those who thought they would have to because they would need the money.

The survey was based on interviews conducted in the summer of 2007 of adults between 45 and 80, including some 400 retirees and an equal number near retirement age but still working.

The pre-retirement group was generally more worried about finances than those who had stopped working. 

For example, 56 percent of pre-retirees said they were very or somewhat concerned that they would exhaust their savings, compared with 45 percent of retirees. In addition, 63 percent of those still working said they worried they wouldn't have enough money to pay for long-term nursing care, compared with 52 percent of retirees.

The discrepancy could be because many of those already retired have worked out their finances, while many of those yet to retire are still unsure, Rappaport said.

The actuarial group carried out surveys in 2001, 2003 and 2005, which found similar levels of concern about financial risks of retirement. 

One difference was that the 2007 survey found rising concern among those already retired about paying for health care, which could be partly due to the erosion of retiree health care programs. And pre-retirees were less concerned about the adequacy of their savings than in 2003, which was a low period for the stock market after the Sept. 11, 2001, terrorist attacks and the crash of technology shares.

Retiree inflation concerns in 2007 rose from 2005 and were similar to levels recorded in 2001 and 2003. 

Given the sharp rise in food and energy costs since the latest survey was conducted, it's likely that worries about rising prices have intensified in recent months, Rappaport noted.

Golden years? 

Here's the percentage of people who said they were very or somewhat concerned in a survey on retirement finances:

Based on a nationwide survey of 800 adults ages 45-80 conducted in summer of 2007.

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