Most of the Americans want to get an increase in the retirement income so that they can deal with the rising inflation issues. This is the reason why Americans are more bent towards having a retirement plan that might pay less in the beginning but increases with time revealed a new survey has revealed. It also found out that the people belonging to the lower income category are barely saving money for retirement and they are worried about making their ends meet after retirement.
Retirement Income Must be Increased
The survey conducted by Allianz Life Insurance Co. of America has found out that Americans are pondering about how they will get pay raises during retirement. In the study, about 53 percent of respondents said that they would be panicked or very worried if they got a frozen income that had no increase in the annual salary and they didn’t have enough money to pay for everyday expenses. About 67 percent of the respondents also accepted that they had got a pay raise about half of the time during the working years.
The Preferred Products
About 80 percent of the survey respondents have said that they would go for a plan that offers income for a lifetime. About 86 percent people said that they were seeking a plan that not only offered a retirement income but also allowed them to get an increased income over time.
When the respondents were told to choose between a plan that starts at a high rate but never increases or a plan that starts lower but increases with time, about 77 percent respondents expressed their interest in the latter option. About 50 percent of the respondents stated that they thought it very or extremely important for a plan to offer that possibility.
The Inflation Issue
Most of the respondents were worried about how the rising inflation and the cost of living would impact their retirement lifestyle. About 28 percent people also said that they were worried about not having enough money to pay for essential items like food, housing, and medical care.
The Worst of It
There are many people who belong to the lower income category who are having a difficult time having their ends meet while still working. Many of them have not got enough savings that they can set aside towards retirement. About 41 percent of respondents who belong to the low-income category and earning less than $50,000 have confessed that they worry about paying for essentials as they would not have any means to save for a retirement income.