Nearly half of Americans don’t believe they will have enough money to retire comfortably. Fortunately, it seems many tend to predict the worst while discovering a comfortable retirement.¹
Perception VS Reality
There is a gap between people’s perceptions of what retirement will be like and their actual retirement, according to Gallup.¹
Almost half of Americans anticipate an uncomfortable retirement.¹
However, according to new findings from a survey by Gallup, when retirement does come, retirees find they have enough money to live comfortably.¹
This may stem from the fear of the future Social Security combined with reports of a retirement preparedness crisis.
And such reports may serve as a motivator for Americans to look at their retirement nest egg and take actions to make sure they have enough money for a comfortable retirement.
For those that expect a comfortable retirement, the share of people who report actually being comfortable at retirement increases to nearly 80 percent.¹
Between 2002 and 2004, 54 percent of people aged 50 to 64 said they would have enough money to retire comfortably.¹
Now, 16 years later, when Gallup interviewed roughly the same age cohort (when they were then aged 65 to 80), 77 percent said they were living comfortably in their retirement.¹
Income in retirement, unsurprisingly, plays a role
Retirement income greatly determines comfort.¹
More than half of those who have an income of $30,000 a year or less say they’re uncomfortable.¹
Compared with just 2 percent of retirees who make $75,000 or more.¹
While many report a comfortable retirement, there are millions of Americans who are struggling in retirement.
1 in 5
Americans in retirement report financial discomfort.¹
Debt plays a significant part
In 2016, the average debt in families in which the head of the household is age 75 or older was $36,757.¹
Take action now
While a portion of Americans report achieving a comfortable retirement, there are still many Americans who are struggling with their retirement. It’s important to act now for a comfortable retirement in the future.
The earlier you start, the more time your money has to grow until your projected retirement date.
If you haven’t started saving for retirement yet, start now. No matter your age, contributing now allows your money to grow overtime with the power of compounding.
Check how much you are currently saving for retirement. Is there room to contribute more?
Update your retirement account as you experience major lifestyle and financial changes for a reevaluation of your investment strategy and projected amount needed at retirement.
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