A new Gallup poll has found that a 15-year high 57% of nonretirees anticipate a comfortable retirement.
Yet, while overall retirement expectations may be rosier, only one-quarter of Americans who are employed or have an employed spouse say they are currently saving enough for retirement.
Nonretirees, many of whom have known for years that the Social Security system could run out of funds before they retire, remain far less likely than those who have already retired to say they will rely on Social Security as a major source of retirement income.
A near record high 57% of nonretired Americans now expect that they will have enough money to live comfortably in retirement while 41% do not. This latest reading, from an April 1-9 Gallup poll, marks a six-point increase in positivity since last year.
As has been the case historically, younger adults are more confident than their older counterparts when it comes to nonretirees' outlooks for a comfortable retirement, presumably because they have more time to save for it. The latest results find that 65% of 18- to 34-year-olds foresee living comfortably in retirement, compared with 51% of 35- to 54-year-olds and 55% of those closest to retirement, aged 55 and older.
Those who haven't retired yet say they are largely falling short of where they think they should be with their retirement savings. Now, as America's baby boomers continue to retire and live longer than prior generations, the Social Security trust fund is expected to run out of money in 15 years if lawmakers don't act.
Nonretirees seem aware of the challenges facing Social Security, and just one-third of nonretirees currently view Social Security as a major source of retirement income. Nonretirees are instead planning for personal investments and other sources of money to carry them through their later years.
However, not everyone is so optimistic about what financially awaits them in the golden years.
Almost 40% of Americans lack confidence they will ever save enough money to retire, Bloomberg reported.That number climbs even higher among older Americans, age 54 or more.
That’s despite nearly one in five Americans who said having enough money saved to be able to retire is their most important financial goal, according to a survey of 1,000 adults conducted by LendEDU in May.
More Americans said saving for retirement is more important versus those that indicated paying off credit card debt or building an emergency fund, according to the survey. However, slightly more respondents said buying their own house or apartment was their most important financial goal.
On average, monthly benefits for a retired worker from the Social Security Administration are $1,468.39 or only about $17,600 per year.