A majority of Americans, 62%, are more concerned about retirement today than they were last year — that’s an increase from the 56% who said so in May. Those who are closest to retirement are the most likely to be worried.
That’s according to a survey by SimplyWise, an online tool that helps investors understand Social Security.
More than half of respondents, 55%, said they were worried Social Security would be “dried up.” Other common retirement worries were outliving savings (50% of respondents), paying medical bills (47%) and paying daily living expenses (39%). Thirty-seven percent were worried they wouldn’t be able to retire at all.
The online study of 1,128 Americans aged 18 and older was done by SimplyWise July 3-6.
Other findings included:
- One in five of those surveyed could not last more than two weeks off their savings.
- 72% now plan to work in retirement (up from 67% in May)
- 58% of those in the workforce are making what they were making prior to COVID-19 (67% of white respondents, 50% of Hispanic respondents and 45% of Black respondents said this)
- One in five in their 60s have lost their jobs or been furloughed due to COVID-19
- 24% are now planning to tap their 401(k) (including 41% of those laid off due to COVID-19)
- 63% of Blacks surveyed could not come up with $500 in cash today (without selling something or taking out a loan).
- Half of those surveyed say another stimulus check is very important to their finances; only 12% believe it isn’t important at all
- 72% (83% of Democrats vs. 60% of Republicans) believe a recession will continue into next year
The study also found that whereas 12% of white Americans surveyed had lost their jobs or been furloughed, 20% of people of color said the same.
Another discriminator is age: Those in their 60s may find it difficult to be rehired, usually for health or discrimination reasons. In fact, whereas 25% have had income reduced due to COVID-19, the unemployment rate that “appears higher for seniors may be indicative of companies looking to cut those with higher salaries and potentially greater insurance costs.”
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