A recent survey found that a percentage of working Americans don’t think they’ll retire.
Retirement is an age-old life stage and an almost universal expectation in working America. However, saving is necessary for a comfortable retirement, and many workers worry that they do not have enough.
A poll in July Jointly implemented by Axios and IpsosWhen asked about retirement, 29 percent of workers under the age of 55 said they would never retire.
When asked why they are not retiring, three-quarters of the non-retirement group said they cannot afford to quit their jobs. Fewer people said they didn’t want to.
Clifford Young, President of Ipsos Public Affairs, said: “The best use of retirement money is always a balance between retirees and the American people who hope to one day reach that milestone.” Stated.
Another survey by the Employee Benefits Research Institute (EBRI) found that one-third of employees expect to leave. Over 70 or never.
A third report from the Transamerica Retirement Research Center found that 40 percent of Gen X workers and almost half of baby boomers expect to: retire after age 70or not at all.
Anxiety about retirement seems to be growing. An EBRI survey found that the proportion of workers planning to delay retirement rose from 29% in 2022 and 26% in 2021 to 33% in 2023.
The summer of 2023 may seem like an odd moment for Americans to feel like they’re short on retirement money. Nearly three-quarters of all 401(k) funding sitting in stockthe stock market is booming this week, that was so hard.
But the full picture of American retirement planning is more complicated.
Inflation is one of the big reasons workers are worried about retirement. surge in 2021 and 2022 After many years of relatively stable prices.
Another factor is the decline in retirement savings. Average 401(k) lost about 20 percent According to investment firm data, its value will decline in 2022.
2022 saw both stocks and bonds plummet. It can’t be. When stocks fall, bonds usually rise and vice versa.Last year strange outliercaused by the inflation crisis and a remedial campaign to raise federal interest rates.
People’s retirement benefits are recovering, but not completely. Average IRA Holds $109,000 Shares fell in the first quarter of this year from $127,000 in the same period last year, according to Fidelity Investments.
More than two-fifths of baby boomers aged 55 to 64 have no retirement savings, according to Census data. Many work for small businesses that don’t offer retirement benefits, work for themselves, or don’t have the income to save money.
The median retirement savings account for that age group is Balance $71,168according to NerdWallet analysis.
Conventional wisdom suggests that that alone is not enough. Workers believe they need about $1.8 million for a comfortable retirement, according to a new survey by Charles Schwab.
Not surprisingly, many Americans believe they will not have enough money to live comfortably in retirement. In her 2023 EBRI survey, 36% of respondents said he had symptoms such as: little or no self-confidence Financial stability after retirement.
That data point is also gradually increasing. A year ago, his 27% of employees lacked post-retirement confidence.
A cross-American study found that only 17 percent of Gen X workers are “very confident” of a comfortable retirement. The oldest in that cohort is approaching age 60.
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