Americans believe they will not have enough savings for retirement

Seven in 10 (69%) Americans plan to retire, but of those who don’t think they will, 42% believe they will never have enough savings to do so. That’s according to a new survey of 2,000 adults evenly divided by generation, where 22% of Gen Z, 19% of millennials and 18% of Gen X don’t believe retirement is in their future. Despite approaching their 60s, 37% of Gen Xers say they will not retire within the next 10 years. In addition to their savings concerns, respondents plan to continue working in case they need their income to support their family (21%) or because they started planning too late (22%). About one quarter (26%) admit that never having started planning for retirement is likely to discourage them completely. Seven out of 10 (71%) of the respondents feel that they are currently behind certain life goals that they thought they would achieve. Goals include their living situation (51%), career path (47%) and starting a family (41%). Conducted by OnePoll on behalf of Prudential, the results found that 52% also admit they have fallen short of the amount of retirement savings they currently planned to have. And the retirement planning mindset varies greatly by generation. Forty-five percent of Gen Zers started thinking about retirement before age 20 and another 33% peaked in their 20s. On the other hand, one in ten Gen Xers admit they haven’t started thinking about it yet, more than any other generation. Almost one-third (29%) of Gen Z think about retirement “always”, and 50% of baby boomers say it crosses their mind “often”. However, if the respondents were hypothetically to retire tomorrow, the millennials are the most prepared (71%), compared to 66% of Gen Z and 62% of Gen Xers. “The survey data shows that many Americans need help with their retirement and other financial goals,” said Michelle Samuel, head of Prudential Financial’s Direct-to-Consumer business. “A lot of people are saving, but they want to get a better handle on where they are. There are others who are not confident that they will be able to stop working, and they need guidance to show them a path to retirement.” Nearly one-third of Americans (28%) said they do not have a strong understanding of what to do to plan for retirement. This was not surprising when they are not familiar with the most common financial products used in retirement planning. More than half of Americans (59%) do not have a 401(k), one of the primary retirement savings vehicles. Of those who do, 21% do not know how much money they have. Additionally, most respondents don’t know or don’t know what IRAs (65%) or annuities (72%) are. Two in five (42%) do not have life insurance and a further 11% do not know what it is. Retirement isn’t the only area where people don’t plan ahead. Three-quarters (75%) of respondents spend less than a year planning for major financial decisions, and 15% of Gen Zers spend one week or less. “The good news is that there are places people can go to get help. Consumers can take advantage of online tools to get a better read on where they stand and a number of other steps,” said Samuel. .” TOP GOALS OF EVERY GENERATION BEHIND Gen Z ● My salary – 61% ● Retirement savings – 57% ● My education level – 56% Millennials ● The amount of money I have in savings – 56% ● Retirement savings – 52% ● My salary – 51% Gen X ● The amount of money I have in savings – 54% ● Retirement savings – 49% ● My living situation – 48% Baby boomers ● The amount of money I have in savings – 63% ● Retirement savings – 51% ● My situation living – 49% Survey methodology: Prudential commissioned this random double opt-out survey of 2,000 Americans evenly divided by generation (500 Gen Z, 500 millennials, 500 Gen X and 500 baby boomers) between March 23 and March 28, 2023. It was conducted by the market research company OnePoll, whose staff are members of the Market Research Association and have corporate memberships with the American Association for Public Opinion Research (AAPOR) and the European Association for Opinion Research and Marketing (ESOMAR). .

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