Common Financial Fears NIW Companies

Common Financial Fears in America

Common financial fears include everything from emergencies to being able to pay for a child’s college. When it comes to retirement especially, people are understandably worried. Gone are the days of the pension and a guaranteed retirement. Work weeks may be getting longer, but more people are worrying about savings and retirement. People are working jam-packed weeks, weekends, and into retirement. So what exactly is on everyone’s minds?

1. Financial Emergency

It might not come as a surprise that most Americans are only a financial emergency away from wiping out their savings. In fact, 40% of Americans making over $100,000 a year have less than $1,000 in their savings account (GOBankingRates). While you would expect this demographic to be in the most control of their finances, research shows otherwise. This gives an indication of the state of the average person’s bank account and their vulnerability to a financial emergency. Financial emergencies range anywhere from losing employment, and/or uncontrollable factors such as a market crash.

2. Not Having Enough Savings To Retire

With Social Security due to run out in 2035 and national debt at an all time high, some may be wondering where their retirement funds will be coming from. Many struggle to imagine how they may possibly have enough money to live off of for the rest of their lives. While the most prepared people have 401k’s and/or deferred compensation, it is a scary fact that even these savings would not be protected should the market crash or their employer go bankrupt.

3. Medical Expenses Due To Illness

Did you know that 1 in 3 Americans between the ages of 35-65 will become disabled for 90+ days (American Council of Life Insurance)? This is quite a surprising statistic! And people are rightly worried about it. With the cost of healthcare being what it is, most know that becoming disabled, getting cancer, or needing an expensive surgery could essentially bankrupt them.

4. Outliving Retirement Savings

Related to concern #2, outliving retirement savings is a common financial fear. In fact, research shows that this fear is more than justified. For example, long term care is essential for 41% of Americans BEFORE the age of 65 with the average cost at $75,000 a year (US Department of Health and Human Services). This means that if a person needed long term care for 10 years, this would cost them $750,000! Add to this the cost of living longer and retirement savings can be slim to none in comparison.


Although all these situations can seem alarming, it is possible to prepare if due diligence is put in place. By using strategies that reduce your downside risk, your market losses can be minimized in the case of an emergency.

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