Biggest slump in sentiment since 2012
A recent Gallup survey has revealed more Americans are showing less confidence about their financial security in their retirement.
Following news of high inflation rates, the recent Gallup poll shows less than 50% of non-retirees are optimistic about their retirement—the lowest mark recorded since 2012.
In the previous polls taken between 2002 and 2005 and between 2017 and 2021, the majority of non-retirees are expecting to live comfortably in their retirement. These findings are similar to those of a survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research.
“Expectations for a financially comfortable retirement are at their worst point in more than a decade among non-retirees in the US,” Megan Brenan, senior editor at Gallup, told Yahoo Finance.
“In the past two years, high inflation and recession anxiety has resulted in less than half of non-retirees being optimistic about their retirement.”
“The most significant finding is the drop in retirement confidence that hasn’t happened since 2007 to 2008 and 2008 to 2009 when the economy was in a recession,” said Craig Copeland, director of wealth benefits research at EBRI.
“Americans are having the same reaction as what they did during a recession. The current economy is not the best, but it is certainly not in a recession.”
According to a BenefitsPRO report, 71% of non-retirees are at least moderately worried about their financial security in retirement, 42% of which are very worried about living comfortably in retirement.
On the other hand, 77% of retirees have reported they have enough to live comfortably. The rate is unchanged from last year’s data.
Around 59% of adult Americans have reported Social Security to be a major source of their retirement income, while 34% of non-retirees expect it will be for them. About 48% of non-retirees believe they will rely more on retirement savings accounts, including a 401(k) or IRA.
Non-retired men, who are younger and with higher incomes and college degrees are more likely to predict a comfortable retirement.
