What’s the Price of Retiree Confidence? Wells Fargo Has the Answer

Further evidence of the confidence among affluent Americans is that a strong majority (61%) say they have "no financial fears" concerning their retirement because they are confident in their planning and preparation, which is about twice the level of those (32%) with less than $250,000 in assets. Conversely, one third (33%) of the affluent "fear doing all the right things today but it still won't be enough" for retirement compared to half (52%) of those Americans with less than $250,000 in assets. Moreover, while one-quarter (24%) of affluent Americans say they need to significantly cut back spending today in order to save enough for their retirement, half (50%) of those with less than $250,000 in assets indicate they will need to cut back spending.

A quarter (27%) of the affluent cite healthcare costs as their primary day-to-day financial concern as compared with 16% of those with less than $250,000, who instead say "paying the bills" is their primary concern (43%). The affluent estimate out-of-pocket healthcare expenses in retirement at $60,000 and those with less than $250,000 estimate $49,000.

"Although the affluent are more financially prepared for their retirement, both groups have grossly underestimated the healthcare expenses they will need in retirement," said Wimbish. "They need to be more aware and plan for the real costs of healthcare in retirement."

Working in retirement due to financial necessity will be a reality for a third (34%) of Americans with less than $250,000 in assets, compared to only 9% of the affluent, the survey found.