10 Biggest Fears Middle-Class Workers and Retirees Have (And How To Combat Them)

Retirement should be a time of relaxation and freedom. But for many middle-class folks, it's also a period filled with worry.

Middle-class workers and retirees are deeply concerned about financial security, health challenges, and the rising cost of living, according to the 2024 Transamerica Retirement Survey, which polled nearly 6,000 adults ages 19 and older with incomes between $50,000 and $199,000.

Fortunately, by identifying key concerns and taking proactive steps, retirees can address these challenges and work toward a more stress-free retirement. Here are the biggest concerns of retirees in the middle class.

Percentage of middle-class retirees who expressed this fear: 40%

With longer lifespans and rising costs, many worry that their nest egg won't last throughout retirement. This fear is especially prevalent among those relying solely on Social Security who do not have significant pension or investment income.

Creating a detailed budget to track expenses and identifying areas to cut costs can help. Also, think about working with a financial advisor to develop a sustainable withdrawal strategy.

Percentage of middle-class retirees who expressed this fear: 40%

The possibility of deteriorating health weighs heavily on many of us. Chronic conditions and age-related illnesses often require costly care, draining financial resources.

To shield yourself from financial hardship due to declining health, make sure you purchase a comprehensive health insurance plan or Medicare coverage. Prioritize preventative care by maintaining a healthy diet, exercising, and attending regular checkups.

Percentage of middle-class retirees who expressed this fear: 39%

Many folks worry about the future of Social Security, fearing that benefits may shrink or disappear due to funding shortfalls. Given the program's uncertain solvency, retirees feel apprehensive about relying on it as a primary source of income.

Instead of relying on Social Security benefits for your financial future, diversify retirement income streams with 401(k)s, IRAs, and savings accounts.

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Percentage of middle-class retirees who expressed this fear: 33%

A diagnosis of dementia is another significant concern, not only because of the emotional toll but also due to the financial burden of specialized care. While there's currently no cure for dementia, treatment and care can be prohibitively expensive.

Being proactive can mitigate the impacts of such illness in your old age. Create a plan early, including a power of attorney and advance directives. Save for memory care services early on, and encourage open conversations with loved ones to develop a care plan that meets your preferences and budget.

Percentage of middle-class retirees who expressed this fear: 32%

Long-term care services can be prohibitively expensive. Many people worry about how they'll afford these services if they or their spouse need them, especially since Medicare does not cover most types of long-term care.

You might consider purchasing long-term care insurance to offset potential costs. Also, research state-specific programs that provide financial assistance for elder care, and discuss your long-term care options with family members.

Percentage of middle-class retirees who expressed this fear: 30%

During our working years, many of us scrape by, living paycheck to paycheck. Worrying about paying the bills is a constant fear.

Those worries can carry over to retirement. In fact, some may find them increasing once they no longer have a steady paycheck. Taking a part-time job during retirement might help reduce your fears.

Percentage of middle-class retirees who expressed this fear: 29%

One of the toughest realities of aging is the prospect of losing independence. After decades of autonomy, many retirees have to give up some level of control as their bodies and minds age.

Eating right, exercising, and taking other measures might help to delay the day of reckoning, but losing independence will be a reality for many of us.

Percentage of middle-class retirees who expressed this fear: 25%

Health care costs were rising long before the recent bout of inflation took hold, and costs show few signs of stabilizing.

If you have money left in a health savings account (HSA), you can help mitigate some of these expenses. But as you grow older and need more medical care, costs are likely to rise.

Percentage of middle-class retirees who expressed this fear: 24%

Many people who pass the age of 50 find their friends and social contacts beginning to dwindle. This can lead to feelings of isolation and loneliness.

But it doesn't have to be that way. The world is full of good causes that need volunteers or younger people who need mentors. If you are proactive, you can avoid loneliness and isolation.

Percentage of middle-class retirees who expressed this fear: 21%

The cost of shelter has gone through the roof in cities from coast to coast. Simply finding and maintaining a place to live is a challenge for many.

Older folks might find more affordable housing in places that cater to residents who are 55 or older. But no matter where you live, housing is likely to be expensive.

While these fears are very real, they don't have to dictate your retirement. With proper planning, you can mitigate risks and take control of your future.

As you reflect on your retirement plan, ask yourself whether you are taking the right steps to address these potential challenges. Proactively tackling these fears today can help you prepare for retirement with greater confidence and security.