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According to a recent Gallup poll, nonretired Americans’ expectation for a comfortable retirement has fallen 10% since 2021. This year has the most pessimistic retirement outlook since 2012. High inflation and fears of recession has made it hard for Americans to save and has contributed to their negative outlook.
Many nonretired adults (71%) are worried about their ability to fund their retirement. Individuals who were male, under 30, graduated college, or earned a higher income, reported having more confidence of living comfortably in retirement. Of lower-income non-retirees, 19% expected to live comfortably, and 88% are worried if they would have enough money to retire.
Despite non-retiree low expectations, most current retirees report they are financially stable. Retirement income sources may contribute to non-retirees’ attitudes and current retirees’ experiences. Fifty-nine percent of current retirees will have Social Security as their major source of retirement income, but only 34% of non-retirees expect the same. Also, other retirement income sources have dropped several points including home equity, having a work-sponsored pension, and the use of annuities or insurance plans.
Financial stress and retirement concerns can weigh heavy on employees, possibly impacting their ability to focus on work. This can lead to low morale, increased mistakes, and lost productivity. Employers can help boost employees’ confidence about retirement by providing education on retirement savings plans, expanding payroll deductions for their emergency funds, and offering financial planning resources. Download the bulletin for more details.
This blog is intended to be a compilation of information and resources pulled from federal, state, and local agencies. This is not intended to be legal advice. For up to the minute information and guidance on COVID-19, please follow the guidelines of the Centers for Disease Control and Prevention (CDC) and your local health organizations.