More than half of all Americans have no plans for retirement, a new survey finds.
Allianz Life’s 2024 Annual Retirement Survey found that 56 percent of Americans do not have a solid financial plan for their post-work future. The survey, conducted in February and March of this year among 1,000 people aged 25 and over, found that nearly half (48%) are worried that they are being too frugal and are not enjoying their retirement to the fullest. It was also revealed.
It also found that 45% are concerned about the best way to take distributions from their retirement savings for retirement income.
Retirees’ biggest concern for their financial well-being is the continued rise in the daily cost of living, with 42% citing this as a concern, followed by 35% worrying about having a surplus in their retirement savings. It is said that
32% said they were worried about medical costs, and 30% said they thought they would overspend and eventually run out of money in retirement.
Stock image of a man sitting in a chair with a contemplative expression. A study by Allianz Life found that more than half of Americans have no plans for retirement. Stock image of a man sitting in a chair with a contemplative expression. A study by Allianz Life found that more than half of Americans have no plans for retirement. getty
“If you don’t know how you’re going to generate income from your retirement assets, it means you’re not ready to retire,” said Kelly Lavigne, vice president of consumer insights at Allianz Life, about the report. ” he said.
“Much retirement preparation is focused on accumulating assets, which is important, but it’s important to understand how those assets will fund your retirement. , you’ll need to make important decisions, such as when to start making claims. Consider Social Security and what resources you have for your retirement.”
The study follows a pattern of similar studies that have found that many Americans nearing or currently retired struggle with the funds to get themselves through.
A recent survey by Greenwald Research for Edelman Financial Engines found that one in three respondents believe they will never be able to fully retire and will need to continue working at least part-time into their later years. I did.
“In previous generations, retirement was often viewed as a distinct, complete event: people worked until a certain age and then left the workforce completely,” says Texas-based Aspen Wealth. Management’s senior asset manager Jim Davis previously told Barron’s.
“However, more and more retirees are now choosing to take a phased approach, reducing their working hours gradually, rather than retiring completely.
“This change is primarily driven by a combination of economic needs, increased life expectancy, and the desire to stay mentally and socially active for longer.”
According to a 2023 Pew Research Center report, about 1 in 5 Americans over 65 will still be employed in 2023, nearly double the number 35 years ago. are.
In response to the 2.5% cost-of-living adjustment benefit hike announced by the Social Security Administration earlier this month, a poll of 2,000 U.S. retirees conducted by financial advisory service The Motley Fool found that 50% are out of money. It has been revealed that he is considering returning to work.
The Motley Fool also found that 28 percent of retirees rely solely on Social Security benefits throughout retirement, and 32 percent rely heavily on Social Security benefits. The total is more than half, or 60%.
