They're not adequately prepared for a range of financial risks in retirement, but different generations vary in their concern levels about different threats to their retirement security.

That's according to the Society of Actuaries, which released two studies indicating that not only are people weighed down by fears of running out of money but many are also caring financially for other family members.

Worries about money are common, with 63 percent of respondents to the first study saying they're afraid they won't be able to maintain a reasonable standard of living for the rest of their lives.

And no matter their generation, respondents also fear not having enough funds to pay for health care—although only 36 percent of respondents say that saving for future medical costs is a high priority.

That could be because they're already financially squeezed, though, since two out of five respondents to the second study say they've provided financial support to a family member in the last year alone.

Incidentally, the report finds that the sense of financial obligations extends toward stepchildren as well, with 64 percent of respondents saying there should be no differentiation between stepchildren and “natural born” children in the help they are offered.

However the sense of obligation is not as strong when it comes to adult stepchildren helping their stepparent if needed.

Among the generations, millennials are the ones who do best at sticking to a budget and or a monthly savings plan.

But the ability to handle unforeseen expenses, according to the report, increases with age, with early boomers doing the best and the silent generation not so well.

Sixty percent of early boomers they could manage a $10,000 expense with savings or emergency funds, but just 46 percent of millennials would use savings—since despite their budgeting skills, they have fewer assets and more competing financial priorities. The so-called silent generation, however, is definitely in a tight spot, with half not being able to use their savings for an unexpected $10,000 expense.

Says the report, “This is consistent with and may be reflective of the fact that only half of all respondents are prioritizing building up an emergency fund to safeguard against unexpected expenses.”

Another big fear for all generations is fraud or scam, with half of all respondents worried that such an event will threaten retirement. Millennials and late boomers are the most concerned about such a thing, at 57 percent and 52 percent, respectively.

While 63 percent of respondents are worried about long-term care costs, just 33 percent are saving for such an eventuality.

Then there's inflation: Two thirds of respondents overall say they're afraid it will eat up their savings and investments. Older generations fear it less than millennials, with 53 percent of the silent generation expressing concern, but 73 percent of millennials dread what it could do to their retirement assets.

Instant Insights /

Risks to retirement funds stoke fears, haunt generations: Studies

More From HR Executive

Related Stories

Recommended For You