Confidence in retirement security drops dramatically across demographics

More than one-third of Americans — 37% — feel unprepared or unsure if they are on the right track for retirement. It’s the first time in several years that data from The 2022 BlackRock Read on Retirement survey indicates a notable decline in confidence among savers participating in a workplace retirement plan, down from a peak of 68% in 2021. Among savers who did not have access to a workplace retirement plan, only 51% feel they are on track for retirement.

The BlackRock Read on Retirement, formerly known as the BlackRock DC Pulse Survey, provides insights from a research study of more than 300 large defined contribution plan sponsors, 1,300 workplace retirement plan savers, 1,300 independent savers, and 300 retired workplace savers in the United States.

Inflation is a key driver for the decline in confidence, according to BlackRock officials, and almost 90% of workplace savers report they are concerned about inflation impacting their retirement. These savers also report a decrease in spending on big ticket items (54%) and consumables (42%) as a result. A majority of survey respondents, about 64% also are worried about their nest egg lasting throughout their lifetime — a data point that is even higher among Black/African American (75%), Asian/Pacific Islander (71%) and Hispanic/Latino (67%) respondents. Additionally, 90% of all employers and savers are interested in investment options that would provide guaranteed income in retirement.