They are on track to replace 75% of their income, compared to 64% for Americans overall.
Tag: Social Security
Yet, a significant number are not saving for retirement at all.
On top of this, more than three in four worry Social Security could be extinct by the time they retire.
More than one-third of Gen Xers say they have no money at all saved for retirement, and 29% expect Social Security to be their primary source of retirement income.
"Having a plan in place to manage their finances can help retirees feel confident about spending their assets and address the fears that may be holding them back,” says Marcy Keckler, vice president of financial advice strategy at Ameriprise Financial.
In the DC retirement plan industry, it is simply taken for granted that everyone should be saving more and that everyone should save as much as they possibly can; commentator Andrew Biggs offers some important caveats to the seemingly sensible recommendation.
Prudential Financial experts anticipate Social Security’s funding shortfall will likely result in program changes over time, such as reducing cost-of-living adjustments, raising the full retirement age beyond 67 or cutting benefits.
According to the Social Security Board of Trustees, the total annual cost of the federal benefits program is projected to exceed total annual income in 2018 for the first time since 1982, and remain higher throughout the 75-year projection period.
Asked about the major reasons they want to work beyond the traditional retirement age, Americans point to both wants and needs. The most common response is that people want to stay active and involved, or that they simply enjoy working; a fifth say they expect to need to work.
One clear point of concern in the data is the increasing number of Americans who anticipate retiring at 70 years or older than in the “traditional 65 to 69 range.”
Future retirees expect a greater monthly payment from Social Security than what current retirees say they collect, according to a survey from Nationwide.
A poll by LendEDU finds 46% of Americans would participate in a proposed program that would provide loan forgiveness to borrows who agree to delay eligibility to collect Social Security.
Their primary concerns are the continuation of Social Security and rising health care costs.
However, changes in the retirement landscape suggest that future retirees will face much more difficulty.
Manning & Napier created a set of reference guides to break down exactly what individuals need to know about the new tax law, Social Security, Medicare, and long-term care going into 2018.
The campaign is aimed at educating policymakers and the American public about making saving easier for Americans of all ages, helping retirees transform their savings into a lifetime of income and saving the Social Security system.
However, researchers say their outcome could possibly improve, given the fact that they still have a long time horizon to save, the markets could deliver strong returns and the government could save Social Security.
“We’re not suggesting things that take a lot of expense—the strategy uses existing tools plan sponsors have as well as existing capabilities of providers,” Steve Vernon, a research scholar at the Stanford Center on Longevity, tells PLANSPONSOR.
According to the GAO report, the three pillars of the current retirement system in the United States are anticipated to be unable to ensure adequate benefits for a growing number of Americans due, in part, to the financial risks associated with certain federal programs.