Financial security in retirement is a key issue for many Americans, according to Northwestern Mutual’s 2018 Planning & Progress Study.
Nearly eight in 10 Americans are “extremely” or “somewhat” concerned about affording a comfortable retirement, while two-thirds believe there is some likelihood of outliving retirement savings.
The study finds that these fears are substantiated.
One in three Americans have less than $5,000 in retirement savings and one in five have no retirement savings at all, according to the study. One in three baby boomers surveyed had less than $25,000.
Moreover, three-quarters of Americans believe it is “not at all likely” or only “somewhat likely” that Social Security will be available when they retire.
Despite this, less than half (46%) of adults have taken no steps to prepare for the likelihood that they could outlive their savings.
“As financial implications of retirement become increasingly complex, inertia just isn’t an option,” said Rebekah Barsch, vice president of planning for Northwestern Mutual, in a statement. “The good news is that it’s rarely too late to start. In fact, we often compare financial and physical fitness because the hardest part is taking the first step. However, once people commit to a strategy and start seeing positive results, they’re motivated to meet and even exceed their goals.”