Harris Interactive, a major international research firm, recently published a report about how aging Americans feel about their approaching retirement. The study was comprised of a survey of Americans between ages 45 and 65, and it had some interesting results.

What were their most important financial goals? Ninety-seven percent said that ensuring that they had income for life was important, very important or extremely important. Americans want predictability. Fear of an uncertain Social Security system and the volatility of their investments were clearly on their mind.

The same percentage felt that they wanted to protect their assets against losses. Again, the recent stock market gyrations and all the publicity about the residential real estate market had an impact on these responses.

Ninety-six percent of those polled said that to have the ability to cover healthcare costs was important to them.

Healthcare is on the minds of most older Americans. Medicare recently reported that they will be out of funds by the year 2019. Considering that most future retirees will rely on Medicare for their primary healthcare coverage and that they will most likely live well beyond 2019 increases this concern.

More than 90 percent said that they were concerned with having an adequate emergency fund. Of course, an emergency fund is money set aside for those unexpected expenses that we know are coming but we can’t identify. These are things like home repairs, uncovered medical costs, helping family members financially, or legal cost. Also, how much is adequate?

Again, over 90 percent are worried about growing their currents assets. Have you noticed that things cost more this year than last? Nearly every aspect of our lives costs us more now and will continue to cost more in the future. Inflation is here to stay.

One key factor of retiring Baby Boomers is when they expect to retire. The average Boomer expects to retire at age 63 and nearly 90 percent expect to retire by age 65. No surprise in this result. The importance of this response begs the question: how long can a retiree expect to live?

According to the Social Security Administration’s actuarial tables, the average male age 65 should live 16.7 years and the average female is expected to live 19.5. Like Lake Woebegone, where all the children are “above average,” most Americans feel that they are equally above average and will likely live longer than the tables predict.

The concern with outliving income is understandably influenced by the amount of the current nest egg that Boomers have saved. For those with less than $250,000, 70 percent are quite concerned with running out of money, while among those with over $250,000, only 56 percent are very concerned with running out.

Can any conclusions be drawn from this survey?

Of course!

First, retiring early may not be a viable option for many Boomers. They may not have enough to make it through their long retirement years. Also, many may have to work a little to supplement their income needs in retirement. This is not a bad thing since most retirees need more meaningful things to do in retirement. Why not get paid for some of them?

Since it will take more money to retire, it is terribly important to sock away as much as possible in the current high-income working years — especially in tax-deferred retirement plans like a 401K, IRA and other plans.

Boomers need to be planning now. For those over age 45, there is no better time than now to get serious about retirement. There are many budget items that draw funds away from retirement, like college tuition, weddings, travel, and others.

Don’t expect to get much of an inheritance from your folks. They are now facing the same longevity and expense issues that you will face in retirement. Also, don’t forget the high cost of assisted living down the line. They may spend all or most of it.

The bailout for many future and current retirees has been the equity in their real estate. Guess what? It may be a lot less than it was just a few years ago. It is important to be realistic about the values.

Time can be an enemy to retirees, but it can also be an ally if you start early and let compounding work for you.

Notable Quote: “Looking 50 is great when you’re 60.” — Joan Rivers

Tom Mills is a Registered Investment Advisor and Certified Financial Planner®. If you have questions or topics, you may call or write him at 1030 Seminary St. Suite D, Napa CA 94559, 254-0155, fax 254-0158 or e-mail suntrm@aol.com