Despite an improving economy, Americans just aren't feeling confident about their finances.
Their confidence is so lacking, in fact, that a scant 26 percent say they've been able to sustain a traditional view of retirement — and 21 percent don't plan to retire at all.
Those are some of the findings from a new brief from the Pew Charitable Trusts titled "Americans' Financial Security: Perception and Reality." The brief, based on both a survey and focus group meetings, revealed that Americans are still feeling very vulnerable, and that vulnerability is carrying over into retirement plans (or the lack thereof) as well as into other areas of their lives.
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More than half (53 percent) of respondents say that, instead of stopping work in retirement, they plan to do something else, such as working at a different job. When it comes to the workplace, 92 percent are looking for financial security rather than advancement, a clear case of bird-in-hand mentality. That's up 7 percentage points since 2011.
Such a wary attitude about just not losing ground shouldn't be surprising, either, when you consider that 82 percent reported having a financial shock of some kind — whether it was a hospital stay, loss of income, a major home or car repair or loss of a spouse or partner. Among those who went through such losses, 55 percent said that it left them less able to get by on what money they had.
More than half (56 percent) worried about their finances during the past year. Their top worries were lack of savings (83 percent); not being able to pay their expenses (71 percent); and not having enough money to retire (69 percent). And that's considering that 56 percent rated their own financial situation positively — compared with a dismal 42 percent in 2009, during the recession.
They certainly don't feel positive about the economy in general, however. Just 27 percent gave it a positive rating — and that's up from 9 percent in 2008. Considering that only 45 percent report having a steady income and consistent expenses, 55 percent say they are either spending more than they earn or are just breaking even and 33 percent say they have no savings, such a low rating might be expected.
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