Whether the U.S. is facing a retirement crisis isn’t a
matter of debate for the majority of Americans. A new poll shows that 86
percent of people agree that it’s a crisis. And it’s hardly just those
approaching retirement who see it that way. When the generation just starting
to plan for retirement — millennials — are singled out in the data, 92 percent
agreed. At the same time, the results from a report released last week by the
National Institute on Retirement Security show that fewer Americans are worried
they won’t have enough money to be self-sufficient in old age.
Every two years, the institute polls to see how Americans
feel about financial security in retirement, as well as their views on
government policies that could make the retirement picture less bleak. This
year, overall results showed the percentage of those concerned about their
retirement outlook falling to 74 percent, from 85 percent in 2013. As well,
more of those lucky people with pension plans now expect the money to be there
when they retire — 84 percent, up from 79 percent in 2013.
While defined benefit pensions are fast disappearing, the
poll makes it very clear that they’re viewed as the holy grail of retirement
security. The loss of pensions makes it harder to achieve the American dream,
according to 78 percent of those surveyed. Health care costs loom large in
retirement security worries. When asked what made preparing for retirement
harder, 86 percent of baby boomers cited the rising cost of long-term care as a
major factor. The next greatest obstacle cited were salaries not keeping up
with the cost of living, at about 80 percent.
Fewer pensions also play a big part, according to 74 percent
of boomers, and 70 percent said greater longevity is a major factor. That view
didn’t hold for millennials, who obviously haven’t been poring over mortality
tables like their elders. Longevity was cited by 44 percent of the younger
generation as a major factor.
Americans don’t hold out much hope that policymakers will
help. The nation's political leadership doesn’t understand how hard it is to
prepare for retirement, according to 87 percent of those polled. A slightly
smaller proportion felt that Washington needs to do more to help Americans
achieve secure retirements. But the people taking the survey were open to other
ideas, like state-sponsored, low-risk automatic enrollment retirement plans for
those without retirement plans at work. That was judged a good idea by 71
percent of respondents, and 75 percent said they’d consider joining such a
plan.
The poll did reveal one area where some retirees-to-be could
help improve their financial security in old age. When asked whether they
agreed that it was a good idea to delay taking Social Security, even if it
meant tapping savings, in order to get greater benefits from the program, only
42 percent said yes.
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