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Confidence Eluded
By Shikha Mittra MBA CFP® AIF® http://www.feeonlynetwork.com/Shikha-Mittra
According to a survey from the Employee Benefit Research Institute [EBRI] and Greenwald & Associates; nearly half of workers without a retirement plan were not at all confident in their financial security, compared to 11 percent for those who participated in a plan, according to the 2014 Retirement Confidence Survey (RCS).
Retirement Money
In addition, 35 percent of workers have not saved any money for retirement, while only 57 percent are actively saving for retirement. Thirty-six percent of workers said the total value of their savings and investments—not including the value of their home and defined benefit plan—was less than $1,000, up from 29 percent in the 2013 survey. But, when adjusted for those without a formal retirement plan, 73 percent have saved less than $1,000.
Debt
Debt is also a concern, with 20 percent of workers saying they have a major problem with debt. Thirty-eight percent indicate they have a minor problem with debt. And, only 44 percent of workers said they or their spouse have tried to calculate how much money they’ll need to save for retirement. But, those who have done the calculation tend to save more.
Shifting Demographics
The biggest shift in the 24 years has been the number of workers who plan to work later in life. In 1991, 84 percent of workers indicated they plan to retire by age 65, versus only 9 percent who planned to work until at least age 70. In 2014, 50 percent plan on retiring by age 65; with 22 percent planning to work until they reach 70.
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Physician Statistics
Now, compare and contrast the above to these statistics according to a 2013 survey of physicians on financial preparedness by American Medical Association [AMA] Insurance.
The statistics are still alarming:
- The top personal financial concern for all physicians is having enough money to retire.
- Only 6% of physicians consider themselves ahead of schedule in retirement preparedness.
- Nearly half feel they were behind
- 41% of physicians average less than $500,000 in retirement savings.
- Nearly 70% of physicians don’t have a long term care plan.
- Only half of US physicians have a completed estate plan including an updated will and Medical directives.
Assessment
More:
Conclusion
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- Dictionary of Health Economics and Finance
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Filed under: CMP Program, Retirement and Benefits | Tagged: AMA, certified medical planner, Employee Benefit Research Institute, Greenwald & Associates, Retirement Confidence Survey, retirement planning, Shikha Mittra |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Flowchart Brings Clarity to 401(k) Confusion
[Retirement Scan]
In this essay, a financial advisor [FA] helped doctors who were facing increases in their health insurance premiums by better visualizing their full options.
http://www.financial-planning.com/news/retirement_planning/flowchart-brings-clarity-to-401k-confusion-retirement-scan-2691451-1.html?utm_campaign=daily-dec%2019%202014&utm_medium=email&utm_source=newsletter&ET=financialplanning%3Ae3521303%3A86235a%3A&st=email
Plus, means testing and a higher retirement age are possible fixes for Social Security.
Hope Hetico RN MHA
http://www.CertifiedMedicalPlanner.org
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Retirement benefits: Access, participation, take-up rates
According to the December 2014 Employee Benefit News article:
Private Industry State and Local Government
Access 65% 89%
Participation 48% 81%
Take-up rate 75% 91%
Note: The take-up rate is an estimate of the percentage of workers with access to a plan who participate in a plan (calculated by using the number of workers participating in a plan divided by the number of workers with access to the plan, multiplied by 100 and rounded to the nearest one percent).
Source: National Compensation Survey, U.S. Bureau of Labor Statistics
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Doc, Worried about Retirement? What NOT to Do
I see smart doctors take desperate financial steps that make matters worse rather than better.
Here are three strategies to avoid:
1. Denial. Yes, it’s difficult to face an unpleasant truth. However, ignoring financial problems works about as well as ignoring a progressive medical illness.
2. High-Risk Speculation. Physicians interested in catching up with retirement planning may be tempted by high risk investments. Safety must come first.
3. Asking the Wrong Person. Many physicians turn to physicians whom they trust for financial advice. Ask a cardiothoracic surgeon for advice about mitral valves, not mutual funds.
This is the time for worried physicians to make considered financial choices.
The problem is that few physicians know about proven investment strategies and financial products used every day by sophisticated investors like Warren Buffett. Here are a few questions to ponder:
What would you think about a product that protects against market losses, allows you to borrow from your investment and generates tax-free retirement income?
Would you prefer to pay taxes on your income now, or later? As you consider this question, please remember that we only have one way to pay down our huge national debt. Taxes will go up.
Did you know that banks will issue physicians loans to invest in specific financial products, just like they issue mortgages? The loan is secured with the investment.
I am not a financial advisor, and I do not sell any financial products. I’m a physician, committed to the alleviation of pain and suffering. I see many physicians in acute financial pain, and I know there are innovative financial remedies. I use them myself.
A patient with a dire diagnosis once said to me, “Where there’s life, there’s hope.’” The same is true with financial health and retirement plans.
Please encourage physicians worried about their financial security to learn about all of their retirement options.
Vicki Rackner MD
(425) 451-3
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