Social Security Benefits: A majority of Americans believe they'll keep working right up to retirement age.
Yet many still doubt they'll have enough money saved. That's the sobering takeaway from a new nationwide survey.
The Transamerica Center for Retirement Studies polled 10,000 people for the report.
Sixty-two percent said they expect to work until retirement age. Despite that, they still worry their savings won't cover their needs.
What This Means For You
Financial confidence starts with a clear picture of your numbers. If your retirement outlook feels shaky, start by comparing your current savings to your projected needs. That comparison will reveal any shortfall.
Once you know the gap, you can act. Trimming everyday spending now can free up more money for long-term savings.
Catherine Collinson, CEO and president of the Transamerica Center for Retirement Studies, pointed to several forces behind the trend.
She cited economic uncertainty, rising living costs, and the growing role of artificial intelligence and automation in the workplace.
She also noted mounting concern over the Social Security trust funds' finances.
Together, she said, these pressures are weighing heavily on how Americans view their retirement prospects.
The survey also identified the biggest fears keeping future retirees up at night. Needing long-term care due to declining health topped the list.
Concerns about Social Security being cut or eliminated followed closely behind. Outliving one's savings rounded out the top worries.
The good news: each of these risks comes with practical ways to prepare.
How To Handle Common Retirement Fears
Long-term care costs
Long-term care insurance can help offset the cost of future care needs. Premiums run high, though, so shopping around matters.
Buying a policy earlier in life typically means lower monthly payments. But locking in coverage in your 40s means paying those premiums for decades.
David Tenerelli, a certified financial planner at Values Added Financial, recommends a different approach.
He suggests starting to request quotes in your early 50s. According to Tenerelli, people in that age range are less likely to be turned down for coverage due to chronic health conditions than those in their 60s or 70s.
Social Security uncertainty
Government projections add urgency to the retirement planning conversation.
The Social Security Trustees Report estimates the Old-Age and Survivors Insurance Trust Fund can pay full benefits through 2033.
After that point, retirees would receive roughly 77% of what they're currently promised.
Planning ahead means considering how a 23% benefit cut could reshape your budget. Building extra savings now can help protect your standard of living later.
Boosting your savings rate
A few key questions can help identify room for growth. Does your employer offer a 401(k) match?
Are you contributing enough to capture the full match? Do you qualify for a Roth IRA, and if so, how much could you set aside each year?
Finding extra savings usually means trimming expenses elsewhere. Dining out and unused subscriptions are common places to start cutting back.
Follow Us
