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Bank of America preferred banking executive Dean Athanasia breaks down results of a survey on average American concerns.
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Thank you very much you -- I -- he can't get along for your house and I had to worry about your retirement and you can't say that it you know you have the money part well according to latest survey of Bank of America's Merrill Lynch adds it's not.
Very many Americans worry about their futures anymore as a matter fact man behind the survey is with us right now -- -- Asia.
Preferred a banking executive at Bank of America joins us exclusively with the details are so people are very.
Worried about retirement very worried but you know it actually starts in the survey -- found out what they're most concerned about is the rising cost of health care.
And when they start to see how much more they're gonna have to pay in the future -- 9% of our our clients -- service and I was number one issue but that cascades down.
And they start to worry about there -- time -- do I have enough assets.
So I can retire in in the lifestyle I want to retire.
You surveyed.
The mass -- wealthy people basically people that have assets between 300000.
That's were -- and mass wealthy.
Yes that's about 28 million households in the United States today so that segment a lot of different definitions exist that's a classical definition.
Who really expansions now this is a middle market clients clients who you know professions doctors lawyers teachers.
To household to income -- in the household many of them are -- that they're gonna have to work longer put off retirement -- 57% -- actually told us that they're gonna have to push out their retirement.
Because of unexpected costs cost the economy savings that these have not as not worth as much anymore so they're pushing their retirement out in the gonna have to work longer and actually willing like it makes lifestyle changes that a lot of lifestyle changes there decided to live in their homes longer -- deciding to keep that car longer.
They're cutting back on entertainment and other costs to make up war.
-- and try to get their budget that financials back in line so they can start to get back on track in terms of their time megas at least they're thinking about it the part of your survey that blew me away though was Generation Y.
rates in these are kids eighteen to 34.
And -- -- worse yet they're really worried probably ten percentage points higher than any other class in our survey so they're worried about.
Doing the same same issues but -- -- bigger way health care retirement in my gonna have enough money and I think well obviously because of where they came from in the economy.
They're at it they might be permanently damage in this is in their heads I've got to cut back and I've got to save -- that's what we're seeing.
Canada and 9% unemployment rate these days so little higher than the rest of the country but they probably witnessed their parents lose their jobs their parents' -- -- go down the drain.
So they kind of stage -- -- that they have stage -- but they're taking the right steps they're doing better financial planning they're asking this morning help him out.
They're also saving more we find that -- Bob putting over 300% more money into that and IRA the right thing to do over the last three years and have before so yes.
They're scared they're cutting back -- their expenses but they're saving more they're doing the right things back on track.
They have to worry I suppose you know there's another sandwich generation all over again right -- -- -- having children.
But -- watching their parents' age they got it from both sides they've got -- for both sides have nothing to worry about in -- in -- take him my family and also my going to be able take care of an aging parent.
I have than households so they've -- -- double the war is.
And they're looking at -- from both ways that and that really stands up our service only because I am thinking about it all the time college that's really scary black people and it seems that first you underestimate the cost your firstborn pension you do you underestimated and I think it's also because -- most people will help us again at.
And most people to meet tonight most people tell us they have in -- have -- done a financial plan that have saved enough but when it comes time to send their child to college 64%.
Had said that they don't have enough money.
Part of that's due to.
Over the last ten years college costs have doubled in the next ten years -- increased by 80% again so it's hard to predict anything it's the right way but you've got to get there have a sound financial plan and firstborn sons cost more than -- growth they do it on -- -- yeah.
-- if it.
Toward sunset and jump right I.
-- and I think it's because parents want to take care they had that they feel that responsibility.
They want that first born to go to that elite college war and it and they and they want to -- them.
The choice is between saving for retirement are paying for college would you advise that people do.
We well when we do full financial planning we ask what your goals are life and every family's different what they wanna do they have different numbers of children and and they have a different -- retirements we sit down -- -- full financial plan and asked if they have a family and physical we have some -- for both in the right portions right -- separate myself accused him.
-- -- yeah thank you very much.
And refrigerator box and -- -- I'm looking at the face and if you house at least forty of the infiniband alright.
