A recent Harris Poll found that many Americans are worried about their retirement savings, although most have a financial plan in place.
Via an online survey, 2,286 adults were asked about their feelings toward their strategy for building a nest egg. Among those who were not yet retired, 74 percent said they worry they won't have enough money by the time they're ready to exit the workforce. Of that group, 69 percent said that retirement planning is a priority. Americans still understand why it is important to open a savings account and prepare for the golden years, especially as many do not plan to rely on Social Security benefits. Of those who haven't retired yet, only 35 percent said that they expect the government financial assistance to be available when they retire.
Health care costs were a chief concern among future retirees, as 70 percent said they worried about paying these expenses after they stop working. Furthermore, 67 percent of total respondents said they are concerned about unexpected health care bills.
Americans are saving, especially millennials
The survey results showed that consumers are doing what they can to ease their fears, as 69 percent of respondents said they are putting some money toward savings. Retirement and unexpected emergencies were the top reasons to save, accounting for 52 percent and 65 percent of respondents, respectively.
A recent report from TransAmerica Center for Retirement Studies found that among millennials specifically, the urge to prepare for the future is strong.
"Many Millennials began entering the workforce coincident with the Great Recession," said Catherine Collinson, TCRS president. "It might be easy to conclude that their prospects for achieving a financially secure retirement are iffy at best. Much to our surprise and delight, our research found employed Millennials to be an emerging generation of retirement super savers."
The study polled 4,143 total respondents, 1,021 of which were millennials. America's young adults have seen the pitfalls of the previous generations' retirement strategies and want to save more intelligently for the golden years, especially as 81 percent of this group does not expect to rely on Social Security benefits. The average age millennials start saving was found to be 22, and 70 percent are already saving through individual retirement accounts or employer-sponsored 401(k) plans.
For more information on effective wealth management strategies, contact Landmark Bank.
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