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A Comfortable Retirement is What People Over 50 Anticipate

Did you know…nonretirees expect a comfortable retirement according to a recent Gallup Poll?

Last year (April 2016) 48% of nonretired Americans thought they would have enough money to live comfortably in retirement. However, this year 54% who currently believe they will have enough money to live comfortably in retirement.  This is the highest percentage in about a decade.

Other interesting points:

  1. Gallup first asked this question in 2002. That year, 59% of nonretirees thought they would have enough money to live comfortably. It remained high until 2005, when the belief dropped to 53%.
  2. In 2008, a few months into the Great Recession, those expectations for a comfortable retirement fell to 46%.
  3. The percentages continued declining until reaching a low of 38% in 2012. A contributing factor was, no doubt, the decline in Americans’ economic confidence in general. Plummeting property and stock values were part of the equation.
  4. Younger nonretirees (aged 18 – 29) are more confident than older nonretirees about retirement. They may assume they have plenty of time to save for retirement. The older age groups (30 to 49 or 50 to 64) recognize that the window of opportunity is closing for them to reach the financial targets they have set for themselves.

comfortable retirement

As you can see, we are looking forward to soaring in retirement!

Are Americans worried about not having enough money for retirement?

Well, according to this poll, 54% are now “very” or “moderately” worried about this, compared to 64% in 2016. This is the lowest percentage since 2004.

An interesting perspective on this matter according to the Gallup Poll:

“Of those who are retired, 63% are not worried about having enough money for retirement. This could be because once people are retired they become more confident that their financial resources are sufficient. Or, it could be that today’s retirees did an effective job of saving for retirement and are now reaping the benefits of that prudence.”

What is the Bottom Line?

Americans in general feel less concerned about their retirement financial situation than they have in a long time. This is seen in nonretirees’ outlook for a comfortable retirement. It is also part of Americans’ confidence that they will have enough money once they are out of the workforce.

These trends may be the result of a somewhat improved economy after years of recession. Also, the sluggish growth in the labor and housing markets appears to be turning around. The continued bull market may also be a factor.

“According to the Wells Fargo/Gallup Investor and Retirement Optimism Index, investor confidence in the stock market and economy is up sharply from 2016.”

The trends may also be the result of confidence that the new presidential administration will put into place policies that will positively affect Americans’ personal finances.

Nonretirees are Looking Forward to a Comfortable Retirement!

Related Posts:

7 Threats to Baby Boomer Retirement

It’s Time for a Personal Finance Checkup – 50+

 

 

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