Only 22 percent of the 1,000 voters surveyed nationally are confident about having enough money to live on throughout their retirement years.
Of those surveyed, the average expected amount of savings respondents believe are needed is $2.19 million, comprised of cash, homes, stocks, 401K, and IRA savings.
Micah Roberts, a partner at Public Opinion Strategies, which conducted the survey, told The Epoch Times that most Americans don’t have anywhere near that amount saved.
“In fact, there’s a large group who have no retirement savings at all—nearly 30 percent,” he said. “Only 15 percent have saved some funds, but many Americans may find themselves working for much longer past the age of 65.”
Based in Alexandria, Virginia, Public Opinion Strategies also found that 66 percent of registered voters have less than $150,000 in retirement savings, including 54 percent of Generation X voters ages 44 to 59. Only 19 percent reported having savings between $150,000 and $500,000, and just 15 percent had more than $500,000.
“A staggering 78 percent of those not planning to retire by 65 say it’s because they will simply be unable to afford it,” added Roberts. “And only 13 percent of voters believe that our nationally elected officials are focused on helping people like them plan and save for a secure retirement.”
“People are still struggling against the cost of living,” explained Roberts. “We’re in a very pessimistic time about the economy going from a high several years ago to a low during the past few years. This isn’t political—there are proven indicators when we had positive and negative periods.”
The survey also indicated concerns about the availability and presence of Social Security. Over 65 percent of those not yet retired admit they’re not confident they they’ll ever get a benefit, while 27 percent of those retired worry their benefits won’t last throughout the rest of their lives. Among those most concerned were younger people, women, black voters, and single mothers.
Some 75 percent of overall respondents fear they’ll be unable to maintain their stand of living throughout their retirement years, while 73 percent say they may lack adequate savings or investments to fund their needs in the future.
Generation Z (ages 12 to 27) and Millennials (ages 28 to 43) may be saddled with the biggest challenges when trying to save money. “Some of them have at least $20,000 in student loans, in addition to credit card debt, bills, and expensive rents,” added Roberts. “I think younger people are feeling the most pressure.”
Almost 30 percent of that group said they can’t pay off their credit card debt, and 19 percent admitted they could not pay a $500 unexpected expense. Overall, the poll found that less than 40 percent of voters have an emergency fund with more than $10,000 saved, and 26 percent have no readily available savings.
According to the Social Security Administration, Americans can apply for retirement as early as age 62, although the benefits paid will be less than those paid out at the full retirement age. Full retirement is currently holding at 66 and 6 months for those born in 1957, to 66 and 8 months for those born in 1958, 66 and 10 months for 1959 births, and 67 for people born in 1960 or later. Individuals choosing to wait longer before collecting can reap the maximum benefits at age 70.
Aaron Cirksena, founder and CEO of MDRN Capital, has spent his career in financial planning and management of clients’ assets. He told The Epoch Times that this study could just be the tip of the iceberg.
“It’s going to be a time bomb that gets worse when you have a massive amount of people almost fully dependent on Social Security,” he said.
“Unfortunately, many people have not been able to save enough money, and many retirees may need to work part-time jobs in order to make ends meet.”
The only other option, he said, would be for them to rely on assistance from family members, or to tap into an income-producing option like a reverse mortgage on their homes.
“Ultimately, their lifestyles will have to adjust, or they may have to take advantage of government programs such as food stamps, Section 8 housing vouches or Medicaid,” he added.
In addition to a large volume of Baby Boomers predicted to enter the Social Security system, Cirksena said the problem could worsen should the federal government allow illegal immigrants to file for Social Security.
“This would create an even greater strain on the system, which was never meant to sustain people for the rest of their lives,” he explained. “People are living longer now, so instead of drawing from Social Security for just a few years, they potentially could be receiving payments for 30 years or more.”
For younger people, Cirksena recommends taking advantage of 401K and IRA plans as early as possible. “Time is the one thing they have on their side—even if they’re putting away just a few dollars a week. It all adds up over the years,” he said. He also suggests younger people consider moving to areas of the country that offer more affordable rents and living costs.
Some 84 percent of survey respondents who are not yet retired say they do plan to do so, and the average age reported was 64.
