More Americans are ‘pessimistic’ about retiring on time (lowest point in a decade)
From 2017 through 2021, most non-retirees expected a comfortable retirement, but during the Great Recession and in the past two years amid high inflation, less than 50% of non-retirees have been optimistic, says a Gallup poll.
Retirement is ideally viewed as the relaxing and celebratory phase of one’s life. However, a recent Gallup poll shows that unretired Americans have a less than favorable view on the financial aspects of retirement. Between 2002 and 2005 and again between 2017 and 2021, the majority of non-retirees expected a comfortable retirement. In the years during and after the Great Recession and in the past two years amid high inflation, less than 50% of non-retirees have been optimistic about their retirement.
Today, non-retired Americans are more pessimistic about retirement than they have been since 2012. In all, 43% of non-retirees think they will have enough money to live comfortably, while 77% of retirees (unchanged from last year) say they currently do. These findings come from a recent Gallup poll, where 71% of non-retired adults are at least moderately worried about being able to fund their retirement. This includes 42% who say they are very worried.
Lower-income non-retirees are notably grim about their retirement possibilities:
- 19% expect to live comfortably
- 88% worry about having enough money to retire
Related: Delayed: 25% of pre-retirees push back retirement, 15% unsure if they’ll ever retire
Non-retired Americans also differ from those who have already retired when asked about their retirement funding. About 59% of adults report that Social Security is a major source of their retirement income — but far fewer non-retirees, 34%, expect it will be for them. Instead, non-retirees continue to say they will rely more heavily on retirement savings accounts, including a 401(k) or IRA. Currently, 48% of non-retirees think a 401(k), IRA or similar type of retirement savings method will be a major retirement income source.
Amid a period of high inflation, non-retired Americans’ expectations for a comfortable retirement are at their lowest mark since 2012. This may branch from a difficulty saving money when prices are high, or the result of uncertainty about the future of the Social Security system.
Meanwhile, current retirees’ reports of living comfortably are unshaken, with a strong majority continuing to report that they are financially secure. Non-retired men, specifically those who are younger, with higher incomes and college degrees are all more likely than their counterparts to predict a comfortable retirement.