- ORIGINAL NEWS
Just 4% of current retirees say they are ‘living the dream,’ survey finds. Here’s why
- SUMMARY
Retirement expectations are not being met for many Americans, with only 4% reporting they are fulfilling their dreams.
A significant majority express concerns about financial stability, particularly due to inflation, healthcare costs, and the potential for a severe market downturn.
Experts are divided on whether a retirement savings crisis is imminent.
Some argue that the situation is dire, citing a lack of retirement plans and insufficient savings.
The decline of employer-sponsored pension plans has shifted financial responsibility onto individuals.
Skeptics dispute this crisis narrative, pointing to data suggesting that seniors with modest savings report being financially secure.
They attribute the perception of a crisis to inflated assumptions about retirement expenses.
The issue of Social Security and Medicare insolvency looms, with projections indicating potential shortfalls in the coming decade.
Political gridlock may hinder efforts to address this.
The Schroders survey highlights a gap in retirement preparedness, with 32% acknowledging insufficient savings.
Experts recommend delaying Social Security benefits for higher returns and increasing contributions despite financial constraints.
Compound interest can enhance returns over time.
Ultimately, addressing the uncertainties surrounding retirement requires a comprehensive understanding of individual circumstances and financial planning.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Most of the respondents fall somewhere in between — 44% said they are comfortable; 34% said they are not great, but not bad; and 15% said they are struggling, according to the rounded results.”
“By delaying Social Security benefits past the initial claiming age of 62, they can access higher benefits.”
“It also helps to save more, even as higher costs make that more challenging.”
“Compound interest — interest accumulating on interest — can help even small sums grow substantially over time.”
Negative
“Just 4% of today’s retirees said they are “living the dream,” according to a new survey from asset management company Schroders.”
“And just as many — 4% — said they are “living the nightmare.””
“The real picture of retirement is far from the dreams Americans had hoped and worked so hard for,” said Deb Boyden, head of U.S. defined contribution at Schroders.”
“That’s followed by higher-than-expected health-care costs, with 85%; a major market downturn that may significantly reduce their assets, 76%; not knowing how to best draw down income, 69%; and outliving their assets, 68%.”
“The retirement savings crisis in the United States is no longer looming: it is here, now,” said a new report from the National Institute on Retirement Security.”
“Americans may face a shortfall in their golden years, as many workers still lack access to employer retirement savings plans and typical retirement savings are short of matching workers’ pre-retirement standard of living, the research found.”
“It’s less likely that future retirees will have pension income to rely on, because fewer of them have pensions now than today’s retirees do, and it’s more likely that they’ll be financially vulnerable if they have insufficient savings, Boyden said.”
“Biggs has sought to debunk the idea that retirees must have massive sums set aside, using Federal Reserve survey data as evidence.”
“Yet a third of workers have less than $50,000 in savings and investments, and 14% of workers have less than $1,000, EBRI found.”
“New projections released this week confirmed Social Security’s and Medicare’s trust funds are still on the brink of insolvency.”