- However, almost 8 in 10 workers and 7 in 10 retirees are concerned that the U. S. government could make significant changes to the American retirement system -
A new report published today from the 34th annual Retirement Confidence Survey finds workers’ and retirees’ confidence has not yet fully recovered from the significant drop seen in 2023, but majorities remain optimistic about their retirement prospects and the lifestyle they envisioned. The Retirement Confidence Survey (RCS) is the longest-running survey of its kind measuring worker and retiree confidence and is conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research.
“Overall, two-thirds of the workers and three-fourths of the retirees are very or somewhat confident about having enough money to live comfortably in retirement, which is unchanged from 2023. The survey also shows that workers and retirees are confident that government programs such as Social Security and Medicare will provide benefits of equal value to today and believe they understand the Social Security program,” said Craig Copeland, director, Wealth Benefits Research, EBRI. “Confidence is similar across all ages. But, in some cases, younger workers are actually more confident in certain aspects of retirement. For generation specific results, Boomers and Millennials reported higher confidence in having enough money to live comfortably throughout retirement than Gen Xers.”
The 2024 survey of 2,521 Americans (1,255 workers and 1,266 retirees) was conducted online from Jan. 2-31, 2024. All respondents were ages 25 or older and were prompted to respond to questions about retirement confidence, financial health & concerns, retirement savings & preparation, healthcare in retirement, workplace savings, retirement income, transition to retirement and trusted sources of information.
“Workers and retirees are also concerned that their retirement could be impacted by the U. S. government making changes to the American retirement system. In fact, 79% of workers and 71% of retirees have this concern,” said Lisa Greenwald, CEO, Greenwald Research. “Inflation’s impact on their retirement also remains a concern among workers and retirees.”
Key findings in the 2024 RCS report include:
• Workers’ and retirees’ confidence has not yet fully recovered from the significant drop seen in 2023, but majorities remain optimistic about their retirement prospects. While Americans’ confidence has not returned to prior levels, there are signs that it is making a positive recovery as 68% of workers and 74% of retirees are confident they will have enough money to live comfortably throughout retirement. However, this is not a significant increase from last year. Perhaps contributing to this positive trend upward is workers’ and retirees’ increased confidence in their income. According to the U.S. Census, wage growth is now outpacing inflation growth. Americans are starting to feel this shift as 28% of workers and 32% retirees who are confident feel that way due to their finances. However, inflation remains as a top reason for Americans’ lack of confidence. Among those who do not feel confident, 31% of workers and 40% of retirees cite inflation as the reason why. Additionally, 39% of workers and 27% of retirees who are not confident feel this way due to their lack of savings.
• Social Security remains the top source of actual and expected income for Americans in retirement. Most workers (88%) expect Social Security to be a source of income in retirement. Retirees confirm this sentiment as nearly all (91%) report Social Security as a source of income. However, nearly twice as many retirees (62%) report Social Security is a major source of income than what workers (35%) expect it to be. While most Americans expect/report Social Security as a source of income in retirement, fewer understand it, but those who understand it are a clear majority. Two-thirds of workers and three-quarters of retirees understand Social Security and the various employment and claiming decisions that impact their retirement benefits at least somewhat well. While most claim they understand Social Security, fewer than half of workers have reviewed the amount of their Social Security benefits at their planned retirement age, and 59% have thought about how the age at which they claim Social Security will impact the amount they receive. Expectedly, significantly more retirees than workers have completed either task, with 77% having undertaken each.
• Workers expect to claim Social Security as soon as they retire but also expect to work for pay in retirement. Workers believe they will start claiming Social Security benefits at a median age of 65, which is the same age workers expect to retire. While age 65 has been the historical median age workers expect to retire, significantly more workers (28%) this year expect to retire at age 65. Retirees, on the other hand, report retiring at a significantly lower age than workers anticipate. Most retirees, 7 in 10, report retiring earlier than age 65, with a median retirement age of 62. Also contradicting workers’ expectations, retirees report collecting Social Security later into their retirement but earlier than workers’ expectations at around age 64. Similar to last year, half of retirees say they retired earlier than expected. While 2 in 5 retirees who retired early say they did so because they could afford to, nearly 7 in 10 retirees indicate the reason was out of their control.
• Americans’ retirement calculations result in a desire to save more, as estimations drastically differ from what Americans currently have. Half of Americans have tried to calculate how much money they will need in retirement. In reaction to their calculation, 52% of workers and 44% of retirees started to save more. Even though 7 in 10 workers and nearly 8 in 10 retirees have saved for retirement, this renewed interest in saving is spurred by the drastic difference in what Americans believe they will need for retirement compared to how much they currently have saved. A third of workers who tried to calculate how much they will need in retirement estimate they will need $1.5 million or more. However, a third of workers currently have less than $50,000 in savings and investments. In addition, 14% of workers have less than $1,000 in savings and investments. As part of their retirement preparations, half of the workers have estimated how much income they will need each month in retirement. While a quarter of workers do not know how much pre-retirement income they will need to replace in retirement, an additional quarter of workers believe they will need to replace 75% or more of their pre-retirement income.
• Workers would like help saving for emergencies through their retirement plan. Two-thirds of workers and almost three-quarters of retirees believe they have enough savings to handle an emergency expense. Additionally, almost half of workers have planned how they will cover an emergency expense in retirement. However, the ability to save for emergencies is at the top of workers’ list of valuable improvements they would like to see be made to their retirement savings plan. Some Americans are already using their retirement plans to pay for emergencies as nearly 1 in 5 have taken a loan or withdrawal from their retirement plan. Many of those who took money from their plan did so to pay for unforeseen circumstances such as making ends meet (30%), paying for a home or car repair (17%), and covering a medical expense (15%).
• Workers are more likely this year to want to purchase a guaranteed income product with their retirement savings. Among workers who are offered a workplace retirement savings plan, one-third believe having investment options that provide guaranteed lifetime income to be the most valuable improvement to their plan. This landed second on workers’ list of most valuable improvements to their plan. Significantly up this year, more workers who are contributing to their employer’s retirement savings plan, 3 in 10, expect to use savings from their workplace retirement savings plan to purchase a product that guarantees monthly income for life once they retire. This is substantiated by the fact that 83% of workers who are participating in a workplace retirement plan would be interested in using some or all of their retirement savings to purchase a product that guarantees monthly income.
• While expenses in retirement are higher than some retirees originally anticipated, retirees’ lifestyle in retirement is better than they expected. Significantly up this year, over a third of retirees say their travel, entertainment or leisure expenses are higher than they expected. While half of retirees say their overall expenses in retirement are higher than they originally expected, nearly 4 in 5 say they are able to spend money how they want within reason. Despite higher-than-expected costs, significantly more retirees this year, 3 in 10, believe their overall lifestyle in retirement is better than expected. Additionally, over two-thirds of retirees agree they are having the retirement lifestyle they envisioned. A quarter of retirees strongly agree with this statement.
The 34th annual RCS report can be viewed by visiting www.ebri.org/retirement/retirement-confidence-survey. The 2024 survey report was made possible with support from American Funds / Capital Group, Ameriprise Financial (Columbia Threadneedle), Bank of America, Empower, Fidelity Investments, FINRA, Jackson National, JPMorgan Chase, Mercer, Mutual of America, Nationwide, National Endowment for Financial Education, PGIM, Principal Financial Group, T. Rowe Price, USAA and Voya Financial.
t rh ep ey o ro tr So igic nial all y Se ec xu prect ity ed as, a ns ea ou rlr y c e 4 o in f 5 in s ca oy me. they H o ar w e ev ab er l, e n tea o s rp ly en tw d im ce oas ney man hoy w r t eti hey ree w san (6t 2 w %i) th rep in o rea rt S so on ci.al D es Sep cu itr e ith yi g is h a er- t maj han o-re s xo pu ect rce ed o f c o in sc ts o,me sign th ifi an can wth ly a New t mo wo re s rkFr rer eti om s r(3 ee T 5s h % t e )h E e is m x y pp ea ect loy r, ie 3 t e t in o Be 1 b0 n e. ,e b W fiel th R iiev le e sea e m to h rs ei ch t rAme Io nv ser tirt a iu clan lt e lif ses et xy plect e in / r rep etio reme rt Son ct ial is Se bett cuer rit y t as han a s e ox u p rect ce o ed f i .n Ad cod me itioin na rleti ly, ro eme ver n tw t, o few -thi er rd u s n od f er reti str an ee ds iag t, b ree ut t th ho ey se ar w e hh oa u vn in d ger th st e an reti d ir tem are en a tc lliea fes rt m yle ajo th rey ity .en Tw vio s- io th nied rds . A q ou f ar wo ter rk er ofs ran etid r ee ths ree str -o qn ug ar ly t er ag sr o ee f rw eti itr h ee th si s u n st d aer tem stan en d t .So cial Security and the various employment and claiming Results From the 2024 Retirement Confidence Survey Find Workers’ and Retirees’ Confidence Has decisions that impact their retirement benefits at least somewhat well. While most claim they understand Social Not Recovered From the Significant Drop Seen in 2023, but Majorities Remain Optimistic About T Se hc e u3 r4 itt yh , fan ew ner ual th RC anS h ral ep f o orft w can ork b er e sv h iew ave ed rev by iew vised iti n tg h e wamo ww.eb unr ti . o ofr t gh /ei reti r So reme cialn Se t/c reti urirteme y ben nt efi -co ts n a fitd t en hei ce r -p slu an rvn ey ed . T he Retirement Prospects 2 reti 02r 4 eme surv ney t ag rep e, o an rtd w 5as 9% mad have e p th oo ss uig bh le t w ab ito h u s t u h p o p w o rtth fe ro ag me Ame at wrh ic ic an h tFu hey nd c sl a /i m Cap So itc al ial G Se rou cu pr , iAme ty wir lli p im ris p e act Fin tan he camo ial unt (C tho ey lu r mb ecei ia vT e. h r E ea xpd ect nee ed dlly e) , s , iB gan nifi kc o an f t Ame ly mo ric re a,r E eti mp ree ow s er th,an Fid w el oir tk yer Insv h es at vments e comp , FI let Ned RA, ei Jack ther s o tas n N k,a w tio itn hal 7,7 JP % M ha ov rig nan g Chase, - However, almost 8 in 10 workers and 7 in 10 retirees are concerned that the U. S. government could M uner der cer tak , M en u tea ual c h o. f America, Nationwide, National Endowment for Financial Education, PGIM, Principal Financial Group, make significant changes to the American retirement system - T. Rowe Price, USAA and Voya Financial. • Workers expect to claim Social Security as soon as they retire but also expect to work for pay in retirement. G W Fo ro r ee rik mme n er w sal b d d el i a R iev t es e e ea rel tr h ea cey hs i e: s w a i4 ll/ l ea s 2t5 ar d /i2 tn 4 c g l,– ai i n 6 m d a. iep nm. gen So d cen ialt Se res cu ea rit ry c h b en firm efis tp s ec ati al a imedi zing ian n r ag etie reme of 6n 5t , ,w empl hicho is y ee th e bs eame nefit s ag an e d w o hr ea ker lth s F e car o xp re ect m res o r tea e o irn reti c fh or rf e. ma or W o tiv h oer in le : 3 R ag 5 o e n yea 6 D5 r r es s h .as n Fo er b r ee mo nr t e hie nf h o is rm toati rico aln medi , visitan w w ag w e .g w ree ork ner ws al e dx rp es ect ea r tc oh r.eti com. re, significantly more workers (2 dr8 es % n ) er th @ iseb yea ri.ro e rx gp ect to retire at age 65. Retirees, on the other hand, report retiring at a significantly lower age than T w h o e rk E er mp s an loy ti ee cip B at en e.e M fito R ses t rea etirrc ee h I sn , s 7ti it n u 1 te 0,i sr ep a n o o rn t -rp eti rorfi in t, g i n ea dr ep lier en td hen ant ag an e d6 u 5n , b w ias ith ed a med resea ian rch r eti org reme aniza nti t o ag n e th o a ft 6 p 2 r.o Al vis do es c t (W h oe n as tmo rh ad in sit g c ti t au o n n t g,h w D o.r o C ir t.k a ) er ti –v s A e ’ e n an x ew p dect o rep ba je ti o c o rti t n v s p e ,u rib eti nlf io srh r ee ma ed s ti t ro ep od no ay ab rt f c o ro o um lt lecting ctrh iti e c3 al 4 So t is h c s iu an al es n Se u rel c au la r R ti ieti tn yg l r at t eme oer emp in ntt o C lo o t yh n ee ei fid rb en r en eti ce e rfi eme Su t p rr vn o ey t g r b ams fi un td ea s i n w rl i t o er h re k t er han s’ Un w an o d irt k ed rer eti s S r ’t ee e ax ts es p ’ect c . o Fn o afi ti r d o mo en nsr c a e e ti h n ar as fo or u n ma n od tti ag yo et n e ,f 6 u v4 ils l.y i t S r iw eco mi w lar w ver . eb to ed rlias .fo rt o r g y m .ea th r,e hs al ig f n oif fi r ceti anr tee drs o s pa s yee thn ey in r e 2ti 02 red 3, b ea ut r lmaj ier to hran ities ex r pema ected in. While o 2 p in ti mi 5 rs eti ticr ee abs o u w th to h ei reti r rreti edr eme earlyn s ta p yr o th sey pect dis d an sod b te hc e au lif ses e t ty hley e t c ho ey ul d en aff vis o io rd n ed to,. n Tea he rlR yeti 7 r in eme 10 n reti t Cro ee nfi sd in en dic ce at Su e r th vey e r ea (RC so S) n i w s as th e ou lo tn o g fes th tei -ru r n co nn in tg ro slu . rvey of its kind measuring worker # an d # r etiree confidence and is conducted by the Employee B enefit Research Institute (EBRI) and Greenwald Research. • American (M s’ E rD eti IA re NO me T n Et: ca Em lcu ailla R ti on on D s r re esn sue ltr i a nt a d d re esn sire er t @ebr o savie .or m gor to e, re acei s esti vem a a 2ti 0on 24s su dr ra vs eti yca su llm y m dia ffe ryr rfe rp om or tw ).h at A “Ov me er rial ca l,n ts wcu o-r tr he ir n d ts ly o h f a th ve e. w Ho ar lf k er ofs Ame and rtih can ree s -h fo au ve rt h trsi ed of t th oe cal reti curlee ate s h ar oe wv mu eryc o hr mo somew ney t h h aey t c o wn ilfi l d nen eet d ab ino ru eti t h reme avinn g t. In r en ea o cu ti go h n mo to n th ey ei r t o c al liv ce ulc ao timf ono , r 5 t2 ab %l y o ifn w ro eti rkrer eme s an nd t, 4 w 4h % ic o hf i s reti unrc ee ha sn sg ted art ed fro m to 2 sa 0v 2e 3.mo Thre e. s u Er vv en ey t al ho so u g sh h o 7w in s 1 th 0a w t w oro kr er ker s an s d an nea dr r ly eti 8r iee n 1 s 0 ar re eti co ree nfisd h en av te th sa at v ed go v fo er rn rment etireme pro ng t,r a th ms is rs en ucew h as ed So inc tier ales Se tc iu nr s it a yv an ingd i s M sed puir crar ed e b w yi ltlh p e ro dv rias de tic b en diff efi er ten s o cfe in eq whu aal t Ame valur e ic tan o ts o b de al y iev an e dt h bey eliev we ill tn hee eyd u fn od rer reti stan reme d th ne t c So omp cialar Se ed cu tro it h y o pw ro mu gram, ch ” th sey aid c C ur rai ren g C tlo yp h e alv an e d s, av ded irect . A ot rh , W ird ea olft h B wen ork eer fits s w Res ho ea trric ed h, t E o B c RI al . c“C ulo at n e fih do en wc e mu isc sh imi thley ar a w cir llo n ss ee al dl iag n es reti . B reme ut, in n ts o es me tima cas te es th , ey yo u w nig ller nee wd o r$ k1 er .5 s m arie lliact on u oal r lmo y mo re. r e c Ho on w fiev den ert , a int h cer ird ta o in f w as op rect kers s o cu f r rr eti enrteme ly ha n vte . F les ors g ten han er a $ti 5o 0n ,0 s 0p 0eci in fi sc a v res ing usl tan s, B do in ov mer estments s and M . Iin ll en adn diial tio s n r, ep 14 o% rt ed of w hio gr hk er er s c ho an ve fid les en sc t e hian n h $ a1 v,i0 n0 g0 en ino su ag vh in mo gs an ney d itn ov les ive tments comfo . rAs tab p ly ar tth o ro f u th ge hio r u reti t reti reme reme nt n ptr ep than ara G tien on s X ,er ha s. l” f of the workers have estimated how much income they will need each month in retirement. While a quarter of workers do not know how mu The c2 h0 p 2 r4 e -sru eti rvrey eme ofn 2t, 5 in 2c 1 o Ame me tr hiey can w s i( ll1 n ,2 ee 55 d w to o r rep ker lace s anid n 1 r,eti 26r6 eme retin ree t, an s) w ad as d ic ti o o n n d al u c q tu ed ar o ter nl io nfe w fro orm ker Jan s b.el 2i-ev 31e , 2 th 0ey 24 .w Al illl n res ee p d o t no d en rep ts lac we er 7e 5ag % es or mo 25 o re r o olfd ter hei arn p dr w e-er reti e r peme romp nt t ed inc t o o me. res pond to questions about retirement confidence, financial h ealth & concerns, retirement savings & preparation, healthcare in retirement, workplace savings, retirement income, • tran Wor siti ko en rs tw o ou reti ld reme like n hte an lp d sa tv ru in sg ted for s o eu m rc ees rg e o n f ci in efs o r tma hrou tio gn h. their retirement plan. Two-thirds of workers and almost three-quarters of retirees believe they have enough savings to handle an emergency expense. Additionally, almost half o “W f w oo rk rer ker s s an hd av re eti pr lan een s ed are hal ow so t h co ey nc w er iln l ed cov ter ha an t th e e mer ir reti gen reme cy en xt p c en ou se ldi n b e reti imp reme acted nt .b H yo tw he ev U er . ,S. t h ge ov ab er iln it m y en to ts mak ave fio nr g c eme hanrg ges en t co ies th ie s Ame at thr e ictan op ro eti f w reme orker ns t ’s ly is st t em of v . al Inu fab act le , 79 imp %r o of v eme work n er tss t an hey d 7 w 1 o % u lo df l irk eti e t ro ee ss ee h a bv e e mad this e co to n cter hei n, r” rs eti aid reme Lisa nt G sa rv ee inn gw s p al lan d, C . So EOme , GrAme eenw rial can d R s es area e al rcrh ea . “I dy n fl ua sti in o gn t’s h ei imp r ract etir o eme n th nei t r p lran etisr eme to pa ny t f al os r o eme rema rgen insc a ies co as nc n er ea n ramo ly 1 in ng 5 w h oa rv ke ers an tak d en reti a r lo ee an s. ” o r withdrawal from their retirement plan. Many of those who took money from their plan did so to pay for u nforeseen circumstances such as making ends meet (30%), paying for a home or car repair (17%), and covering a medi Key fic n al d ie nx gp sen ins te he (12 50 % 2). 4 RCS report include: • Workers’ and retirees’ confidence has not yet fully recovered from the significant drop seen in 2023, but majorities • reW mor ain k e op rs ti am rei s m tior c a eb lou ike tl y th te hiir s ry ee ti arre t m o e w na t n ptr os to p pe u ct rch s. a W se hia le gAme uarar n ic te an ed s’ ic no co nfi m de e n pc re od hu as ct n w oi tt r het th ue rn ired re t ti o r e pm rio er n ltev sa el vs in , gs. t Amo here nar g w e o sr ig kn er ss t h w a h to it ar ise mak offer ined g a a pw os oir ti kv p e lace reco reti ver ry eme as 6 n8 t % sa o vf in w go s rp kler an s, an ond e -7 t4 h% ird o b f el reti iev ree e h sa ar vin e g c o in n vfi es den tment t they op w tiio lln h sa tv h e at en pro ov uid gh e mo guar nan ey ttee o ld iv le ifeti comf me oirn tab come ly th tr oo b ue gh th oe utmo reti st r eme valun ab t.l e Ho imp wev ro er veme , thisn its tn oo tth a e is ri g pn lan ific . an Thti s i n lan crea ded se s feco rom nld as o tn y w ea o rr . kers’ l P is er t h oap f mo s cs o tn vta rilb uu ab tiln eg i mp to trh oiv seme posin titv se to tr t en he di ru p plw an ar . d Si g isn w ifio cr an ker tls y’ u an p d th rieti s yr ea ee rs , ’mo incrre ea w so ed rk er cosn w fid hen o ar ce e ic no tn htei rir b u in ti cn og me. to their Acc empl or o d yier ng’ s t o reti thr e eme U.S. n C t en sav siu nsg , sw p ag lan e ,g 3 r o in w 1 th 0 ,i s e x np oec w to t u ot p uaci se n sa gv iin nfl ga sti fr oo nm grto hw eitrh w . Ame orkpr la iccan e r seti arr e eme starn ti tn sg a v to in f g ee s p l ltan his t s oh ift as 2 p8 u% rc h oas f w e o a rk per ros d a un ct d t3 h2 a% t g ru eti arran eets ee wsh mo o ar ne th clo yn ifi nc do en me t fee for l t lih fe a to w nc ae y t d h u ey e tr o eti th rei e.r T fi hn is a n isc s es ub . s H to an wti ev at er ed , i n bfl y a tti ho e n fact rema tha in t s8 as 3% a o to f p w ro ea rks er on s w foh ro Ame are rp ic aan rtis c’i p lack atin o gf ic no a nfi wd oen rkp ce. lace Amo reti nr geme thon se t p w lan ho w do o u nlo dt b fee e in l c ter on es fid ted en tin , 3 u 1s% in g o fs w ome orke or rs al an l o df 4 t0 h% ei ro f r reti etir reme ees c n it te sa in vfl in ag tiso t n o as pu trh ce has rea e s a op nr w od hu yc . t Ad th d ait ti g ou na ar llan y, t 3 ee 9% s mo of w nt oh rlk yer in sc an ome. d 27 % of retirees who are not confident feel this way due to their lack of savings. • While expenses in retirement are higher than some retirees originally anticipated, retirees’ lifestyle in retirement is • be Stt oc eira t lh Sa en cu th rie ty y r e e xp me act ine s d t.h Si e g tn op ifi c so an ut rlce y uof p ta hct isu ya ea l a r, n o dv e er xp a et ct he ird d io nfco reti mr eee for s sA am y te h rei ica r n trs av in e lr,e en tirte em rte ai n n tment . Most o r w lo er is ku er re s (8 ex8 p% en ) s ees xp ar ect e So hig ch ial er Se thc an ur itth yey to e bxe pa ect so ed ur.c W e o hf il e inh co alme f ofi n reti reti ree reme s say n tt.h R ei eti r o ree ver sa c llo e nx fip re m ns th es is is nen reti timent remen as t ar nea e h rliy g h al er l (9 th 1an %)