OREANDA-NEWS. June 11, 2015. Nearly two-thirds (64 percent) of Phoenix 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 (60 percent) of retirees in the area are not stressed about finances in retirement based on how they saved for it.

Despite predicting stress, more than three out of five (61 percent) non-retired Phoenix respondents believe they will have enough money in retirement due to how they are saving for it, while the vast majority of retired respondents (82 percent) report they will have enough money for the rest of retirement because of how they saved for it before they retired.

“Even though most Phoenix area residents actively save for retirement they are still concerned about their future outlook, while a surprisingly high number of retired residents feel good about their finances,” said Christine Baim, regional sales manager at Merrill Edge. “Non-retired residents in Phoenix can learn from retirees – you can never be too prepared.”

Pursuing an ideal retirement without financial stress

Part of a biannual nationwide survey, the study explores opinions of Phoenix residents with investable assets of \\$50,000 to \\$250,000 and finds that area respondents are nearly as likely to prioritize saving more for the future (61 percent) as having enough money to live comfortably today (66 percent).

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). Phoenix respondents who have yet to reach retirement are taking actions to get there 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 Phoenix residents are taking to live a stress-free retirement are paying off debt (68 percent) and funding retirement accounts (64 percent). Paying off debt (61 percent) and contributing to a retirement account (53 percent) were also some of the most common measures that retirees took to reduce strain in retirement before reaching that stage.
  • However, nearly half (47 percent) of area retirees preemptively invested as much as they could outside of a retirement account to be stress-free when they did retire, and only 31 percent of non-retired area survey respondents are doing this with the same goal in mind.
  • Similarly, only one-third of Phoenix area respondents who have yet to reach retirement are working with a financial advisor to reduce retirement anxiety; whereas, more than four in 10 (43 percent) of area retirees proactively invested as much as they could prior to retirement.

Financial fears lead to positive financial actions

According to the survey, while the majority of non-retired Phoenix residents are actively investing for retirement, more than one-quarter (26 percent) would still be embarrassed if their close friends or family knew intimate details about their finances, including retirement savings (15 percent), checking account balance (11 percent) and credit score (11 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, those 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 by financial stress (23 percent) and by seeing the successes or failures of their parents (32 percent).