People are living longer but they have a big concern with retirement. Will they have enough money to cover basic living expenses?

Everybody dreams about the things they’d like to do, but it’s important to know your must haves and what you can afford.

The earlier you can plan, the earlier you can take advantage of the time value of money.

A national poll of retirees found that 80 percent are optimistic about having enough money for living expenses.

But that’s a five percent drop in one year.

“When you talk about markets, when you talk about interest rates, obviously the cost of care whether it’s healthcare, people are concerned about social security, that uncertainty does lead to hits in consumer confidence,” said Brian Laraway of Bury Financial Group.

Costs figure to keep rising.

Retirees see plenty of things which affect their consumer confidence.  The cost of healthcare climbing quick, concern about social security and the stock markets being volatile.

“That is a little bit a part of it. Even though interest rates have gone up a little bit you’re still not earning a lot at the bank either, so you’re wondering where am I going to get this extra money,” Laraway said. 

The survey also found that 44 percent of retirees believe health care expenses are higher than they expected when they first retired.

That information gets passed on as younger people see the struggles. and the next group may start feeling less confident about having enough money to retire.

“With pensions going away, people have been forced to save on their own. It’s been a very tough transition on the boomers. They’re doing a good job of planning, but the cost of healthcare is a little bit concerning right now,” Laraway said. 

He says people are going to have to work longer to make ends meet, or retirement is going to be “drastically different” than what they expected.

Americans are living longer, and of course, they want to retire earlier.

The National Institute on Retirement Security finds many are just totally unprepared for the golden years.

According to the National Institute on Retirement Security, the median retirement account balance is just $2,500 for all working-age households.