If you’re concerned about your retirement, you may be surprised to find that a majority of Americans are not. A recent survey found that 7-in-10 U.S. workers are at least “somewhat confident” they will live a comfortable retirement, with 3-in 10 saying they are “very confident.”
Still, the pandemic has left a third of workers (and almost a quarter of retirees) feeling less confident in their retirement prospects.
According to the 32nd annual Retirement Confidence Survey, “those feeling less confident as a result of the pandemic and its economic impact were already among the more vulnerable and less retirement-ready Americans. They are more likely to report poor health, lower incomes and savings levels, and problems with debt.”
The 2022 survey of 2,677 Americans was conducted online January 4 through
January 26, 2022. All respondents were age 25 or older. The survey included
1,545 workers and 1,132 retirees
According to the survey results, “a third of workers and half of retirees who feel less
confident cite inflation and the cost of living as the reason for their
declining retirement confidence.”
Here are the key findings from the survey:
A majority of Americans don’t know who to trust with financial planning
Other key findings from the survey include the fact that 40% of workers and 20% of retirees say they don’t know who to go to for financial and retirement planning advice.
The survey found that many of these people “turn to non-professional sources, like family and friends (35% of
workers and 21% of retirees) or going online to do their own research (29%
of workers and 23% of retirees).”
A quarter of workers said they turn to their employer as a source of
retirement planning information, though employers fall behind advisors,
family and friends, and online research when it comes to being the most
trusted source of information, the survey found.
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Workers don’t feel fairly treated…
Another key finding of the survey: 3-in-10 workers suggested that t”hey don’t feel fairly treated in the workplace,” and a quarter said they’ve had trouble accessing employer-sponsored benefits for their
dependents or beneficiaries.
…but are still happy with retirement benefits
Despite that, more than 4-in-5 workers who are offered a workplace retirement savings
plan are satisfied with the benefit. “This is important given that
workers (82%) remain far more likely than current retirees (47%) to expect
their workplace defined contribution retirement plan to be a source of
income in retirement.”
A lot of workers expect to retire gradually
Roughly 40% of today’s workers expect to make a gradual transition into retirement, though only 17% of current retirees report having done that. Also, 70% of workers said they think they will work for pay in retirement, while
only 27% of current retirees report doing so. And 68% of workers expect income from a job to be at least a minor source of income in retirement,
compared with 22% of current retirees who report this as a source of income.
Some retirees are reporting higher-than-expected expenses
More than a third of current retirees (36%) said overall spending and expenses in retirement are
higher than expected — an increase from last year. When asked their top priorities for discretionary spending in
half of retirees said travel, and a third said spending on leisure or
entertainment activities. And 40% said they are holding money aside or
investing for growth.
Read the complete survey results here.
This article was produced and syndicated by MediaFeed.org.
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