The number of retirees who say they are worried about financial security has more than doubled since a year ago, according to the results of an annual insurance industry survey.
The survey of retirees aged 56 to 77 with more than $100,000 in liquid assets found that 49% of retirees feel less financially secure than when they entered retirement, compared to 20% in 2008.
The survey was conducted by LIMRA, the Society of Actuaries and the International Foundation for Retirement Education.
Respondents also expressed concerns about inflation and 43% said their tolerance for investment risk has gone down since last year, according to the survey.
The retirees whose investment risk tolerance declined in the past year gave the following reasons: Concern about the economy (79%); concern about future inflation (45%); not enough time to recover from the economic downturn (39%); and change in house value (28%).
Seventy percent of respondents said they can still cover their basic expenses and can "afford a few extras," but those who said they can afford to spend on whatever they want dropped from 38% to 22%.
"Retirees are definitely feeling the effects of the 2008 financial crisis, and have begun changing their behavior," said Sally A. Bryck, LIMRA associate research director, who led the research project.