For many Generation Xers and Millennials alike, the thought of retiring “comfortably” can seem like a distant dream. Many are worried about debt and medical expenses as well as the rise in prices for just about everything – food, housing, etc. However, there has been a slight upturn in confidence regarding retirement according to the 2016 Retirement Confidence Survey (RCS). The survey released figures depicting an overall general feeling of confidence in regards to retiring and having the funds to live well. This sentiment is especially true for people on employee or other retirement plans. This year’s results increased slightly from 37% to 39% in regards to those who are very confident about having enough money to live comfortably throughout their retirement years.
The RCS stated that such confidence in having enough money for the retirement years is strongly related to “Retirement plan participation/ownership, whether in a defined contribution (DC) plan, a defined benefit (DB) plan, or an individual retirement account (IRA).”
On the flip-side, the RCS reported that those who do not have a plan are three times as likely to say they are not at all confident about their financial security in retirement.
Other results from the RCS survey found that 43% felt very confident that they might have enough to pay for everyday expenses – up from 2015. However, that sentiment dropped nearly in half when asked if workers would have enough money to pay for medical expenses during retirement – only 22% felt confident about future medical care. That said, there has been a gradual increase in confidence since 2012 about paying for medical expenses.
One of the largest hurdles to a comfortable retirement, RCS found, was the issue of debt. Many of those surveyed said they were not worried about debt (32%) but those who have anxiety around the issue, their confidence in retirement dropped. As a matter of fact, only 9% of debt-ridden workers had confidence in their ability to retire.
For many investors concerned about retirement savings, a self-directed IRA holding physical assets such as gold or silver may provide additional security in an uncertain world. Historically, precious metals have served as a long-term hedge against inflation and as a way to diversify their portfolio.
There are four precious metals allowed to be held in an individual retirement account are gold, silver, platinum and palladium, provided they are in a form approved by the Internal Revenue Service (IRS). Most Gold IRA or Silver IRA coins or bullion are stored at third party depositories, however it is possible to take physical possession of the metals.