Anxiety about retirement reaches across party lines, putting most Americans on the same side of an issue on which they seem pretty far away from lawmakers.
According to a new report, Retirement Security 2017: America's View of the Retirement Crisis and Solutions, published by the National Institute on Retirement and based on a poll conducted by Greenwald & Associates, not only are Americans worried about their economic situation, they're pretty stirred up about what their eventual retirement picture looks like—and it's not pretty.
"If we learned anything from the recent elections," Diane Oakley, NIRS executive director, writes in the report, "it's that Americans are beyond angry about their economic insecurity. So it shouldn't be surprising that Americans—Democrats and Republicans alike—are highly anxious about economic security in retirement."
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The study, NIRS's fifth nationwide public opinion research project, is conducted on a biennial basis to monitor over time how Americans feel about their economic security in retirement and to assess their views on policies that could improve their retirement outlook.
This latest study revealed two glaring facts that supersede the vast political divide straining Americans' daily life these days: first, that Americans "are united in their anxiety about their economic security in retirement," and second, that they are also united "in their dissatisfaction with national policy makers' inaction to address the nation's retirement crisis."
As Republicans move to change or eliminate the underpinnings of many Americans' financial well-being in retirement, people are "angry about their economic prospects."
Here are 10 retirement fears and figures that the survey has found:
10. Despite political affiliations, Americans say the economy threatens their retirement.
Prior to the election, Democrats believed that the economy had improved since the Great Recession and Republicans did not, with the reverse occurring once the election was over.
However, no one is happy with the current state of the economy—and it doesn't matter what party they belong to.
The study cites the 2016 Economic Anxiety Index finding that Americans' economic anxiety has reached a new high:
"Americans are increasingly worried about losing their jobs and their ability to pay their mortgage or rent," the study says, "with a full 30 percent of respondents fearful that they will lose their jobs, up from 10 percent."
In addition, it highlights findings by the Boston College Center for Retirement Research at Boston College that 52 percent of households are "at risk" of not having enough to maintain their living standards in retirement.
9. Americans have plenty of reasons to worry about saving enough to retire.
While some 88 percent Americans cite the rising cost of long-term care as an obstacle to sufficient retirement saving (with 91 percent of Democrats and 89 percent of Republicans agreeing), other factors abound.
Respondents consistently agree, regardless of party, that other factors endangering retirement include the following:
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salaries not keeping up with the cost of living (83 percent)
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increasing debt from student loans, housing or credit cards (81 percent)
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fewer pensions (64 percent)
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living longer (64 percent)
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funding and managing their retirement savings on their own (52 percent)
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stock market volatility (44 percent)
8. Women will have a tougher time in retirement.
The study cites data that confirm women are particularly challenged when it comes to preparing for retirement.
Women are 80 percent more likely than men to be impoverished at age 65 and older, while women age 75 to 79 were three times more likely to fall below the poverty level as compared to their male counterparts.
In addition, across all age groups, women have less retirement wealth than men, even if pensions rather than 401(k)s are involved.
In 2010, according to the study "Shortchanged in Retirement: Continuing Challenges to Women's Financial Future," men received $17,856 in median income from defined benefit pensions, whereas women received $12,000—which is 33 percent less.
And in defined contribution assets there's also a gender gap. Among the 3 million participant accounts in DC plans at money manager Vanguard, the median amount accumulated was $36,875 for men and $24,446 for women—which is 34 percent less.
And since women will likely live longer than men, that gap increases the odds that they will run out of money.
7. Poverty awaits.
If current trends continue, the study reports, the U.S. soon will face rates of poverty among senior citizens not seen since the Great Depression.
Of the 18 million workers between the ages of 55 and 64 in 2012, more than four million will be poor or near poor at age 65. This includes 2.6 million Americans considered middle class prior to retirement.
And by 2035, it is projected that nearly 20 million retirees will be living in poverty or near-poverty, with that number rising to 25 million by 2050.
6. Americans strongly support pensions for public sector workers and see them as a strong recruitment and retention tool.
Despite attacks on unions and collective bargaining, it might come as a surprise to lawmakers that Americans strongly support pensions for police officers and firefighters (90 percent), and for teachers (81 percent).
The research also finds that Americans overwhelmingly support retirement security for workers like corrections officers who face job risks (90 percent).
More than half of Americans (52 percent) believe that public pension benefits levels are about right at $2,205 per month, while 37 percent say the benefits are too low.
Americans also overwhelmingly agree (92 percent) that pensions are a good way to recruit and retain public sector workers like teachers, police officers and firefighters.
Americans support these benefits, the report says, "even though there is a misunderstanding about the funding of the benefits. Only 24 percent understand that taxpayers pay 25 percent or less of the cost of public pension benefits. Some 81 percent say these benefits are deserved because public employees help finance the cost from every paycheck, up from 77 percent in 2015."
5. Protecting Social Security remains important to Americans.
Some 76 percent of Americans say it is a mistake to cut government spending to reduce Social Security benefits for current retirees, up from 73 percent in 2015.
In addition, they don't want those cuts inflicted on future generations; 73 percent oppose cutting government spending that reduces Social Security benefits.
The report also finds that while regardless of party, Americans agree that the nation faces a retirement crisis, they do differ on Social Security.
When asked if the government should cut spending in all areas, even if it means reducing Social Security benefits for current retirees, 15 percent of Democrats agree while 29 percent of Republicans agree.
When asked about reducing Social Security benefits for future retirees, 13 percent of Democrats agree and 36 percent of Republicans agree.
4. Americans remain highly supportive of state efforts to address the retirement crisis and say national leaders don't understand their retirement struggle.
Republicans who recently sought to block states from launching their own retirement savings plans for private-sector workers who have no access to such plans at work might be surprised to learn how popular such plans are among their constituents—Republicans included.
Eighty-five percent of respondents say leaders in Washington have no idea how hard it is to prepare for retirement, while 86 percent say leaders in Washington need to give a higher priority to ensuring Americans have a secure retirement.
In terms of solutions, 82 percent of Americans say the government should make it easier for employers to offer pensions.
Not only that, they also believe that state-sponsored retirement savings plans for workers not covered by an employer's plan are a good idea (75 percent). Moreover, 81 percent of Americans say they would consider participating in a state plan, were it available.
3. They miss pensions, and don't think much of 401(k)s.
Eighty-two percent of Americans have a favorable view of pensions, and a full 85 percent say all workers should have access to a pension plan so they can be independent and self-reliant in retirement.
In addition, 77 percent blame the disappearance of pensions for making it harder to achieve the American Dream.
Do they like 401(k)s? Not so much.
In fact, 71 percent say pensions do more to help workers achieve a secure retirement than 401(k)s, and 65 percent say pensions are safer than 401(k) plans because the risks are managed professionally rather than by individual investors.
In addition, 88 percent say Americans with pensions are more likely than those without a pension to have a secure retirement, and 87 percent say the average retiree doesn't know enough about managing investments to be able to make their retirement savings last, which is a key financial worry for 401(k) plan participants.
2. Americans in overwhelming numbers continue to believe the nation faces a retirement crisis.
If you think Americans aren't worried about retirement, think again; 88 percent agree that the nation faces a retirement crisis.
And that fear cuts across gender, income, age and party affiliation. In addition 74 percent say part of the problem is that employers don't contribute enough money for workers to be able to achieve a secure retirement.
Seventy-five percent also say preparing for retirement is only getting harder, and many are so worried about economic security in retirement that they're willing to trade pay for retirement benefits, with 72 percent willing to take less in pay increases in exchange for guaranteed retirement income in retirement.
1. Across party lines, Americans are worried about their economic insecurity in retirement.
Three-fourths (76 percent) of Americans are concerned about economic conditions affecting their ability to achieve secure retirement.
An even higher level of respondents identifying as Democrats—78 percent—are worried about the economy, compared with 76 percent of Republicans.
In addition, a full 80 percent of Americans say that the average worker can't save enough on their own to guarantee a secure retirement; that's up from 73 percent from the 2015 report.
Eighty-five percent of Democrats and 77 percent of Republicans agree on this.
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