More than half (55 per cent) of Americans say they’re worried they won’t achieve financial security in retirement, according to a new survey by the National Institute on Retirement Security.
The survey, which polled more than 1,200 individuals aged 25 and older in the U.S., found more than three-quarters (79 per cent) believed there’s a retirement crisis, up from 67 per cent in 2020. Indeed, 77 per cent said they don’t think the average worker can save enough on their own to guarantee a secure retirement.
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Nearly three-quarters (73 per cent) of respondents said inflation has them more concerned about their
ability to achieve a secure retirement, as well as market volatility (62 per cent). Two-thirds (65 per cent) said the financial events of the past year have significantly impacted how they envisioned their retirement. Among this group, 31 per cent said inflation and a higher than expected cost of living are the leading concerns impacting their retirement plans. Other concerns cited were that it’s harder to save (16 per cent), they’ll have to work longer (10 per cent) or they’ve been impacted by the economy or stock market (nine per cent).
Additionally, 77 per cent of respondents said workers with a pension are more likely to have a secure retirement. And two-thirds (65 per cent) said pensions were the better retirement vehicle compared to a 401(k). Notably, the majority said workers should have access to a pension (83 per cent) and that government should make it easier for employers to offer pensions to their workers (84 per cent).
“With fewer pensions available and many workers lacking employer-provided retirement plans, there’s an increasingly large worry that the typical American worker cannot save enough on their own for a secure retirement,” said the report.
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