A new survey found Americans – especially men – are increasingly concerned about retirement and debt management.
AARP published its latest findings, which indicate a grim outlook shared by the nation’s workers. While adults over 30 years of age expressed an increased sense of optimism about the future, the survey found that men’s overall sense of financial security has declined since January of 2022. The sentiment was shared by men of all age groups and all income levels.
“This shift in men’s sense of financial security may reflect the cumulative effects of the higher than average inflation of the past couple years, which may have made long-term saving more difficult for men, adding financial pressure as they approach their retirement years,” notes AARP.
According to the survey, 42% of men ages 30 and over describe their finances as “poor" or “only fair” – an 8% increase from two years ago. At least 40% of men – 7% more than 2022 – said they are worried about basic expenses. Additionally, 43% of men have a credit card balance and 38% do not have emergency savings.
Female participants also indicated they are having a harder time financially preparing for the future.
Fewer women (58%) than men (62%) have emergency savings. At least 47% of women are worried about managing their debt. Just three in 10 women believe they are saving enough to be secure in retirement.
Saving for retirement is a widespread challenge for Americans. The survey found that 1 in 4 Americans have nothing saved for retirement.
According to AARP:Among adults who are regularly saving for retirement, just 36% expect to have enough money in retirement to be financially secure if they continue saving at their current rate, while 33% say that they will not have enough money (up from 29% in January 2023). Another 31% don’t know if they will have enough. The increase in the share of retirement savers who don’t expect to have enough money in retirement comes specifically among adults 50-plus, that is, those much closer to retirement age. These concerns highlight the importance of having a plan for retirement. Plans need to address not only how to build savings during working years but also how to spend money in retirement in a way that will allow it to last.
The survey was conducted between Jan. 3 and 29, 2024. Over 8,360 adults ages 30 and older from the 50 states and the District of Columbia took part.
“The data will matter this election year as Democratic President Joe Biden and Republican rival Donald Trump are trying to win support from older Americans, who traditionally turn out in high numbers, with their policy proposals,” reports AP News.
A recent study from Northwestern Mutual found Americans believe they will need $1.46 million in savings to retire comfortably. That total is 53% higher than the $951,000 Americans estimated they would need in 2020.
