This is a brief summary of findings about retirement and future financial plans. The research is based on recent listening sessions with voters, and the January 7-10 survey of 1200 voters.
Key Takeaways
1.) Retirement was a prevalent concern throughout the research. Concern about running out of income in retirement was a stronger concern than their overall retirement situation.
2) 61% said they were confident in their retirement plan (61-37 confident-not confident) but this was mostly “somewhat confident” (42%) rather than “very confident” (19%). The concern about running out of retirement income was more intense, with 66% concerned about this but half of this percentage is “very concerned” (30%).
Income Streams For Future Financial Plans
We asked respondents about the extent to which they plan to rely on a series of 8 income streams as part of their financial plans for the future.
- Social Security was the income stream with the highest percentage planning to rely on it, with 79% saying yes and 52% “definitely yes.”
- Personal savings were the second most cited income stream (77% yes, 46% definitely yes).
- More than half plan to rely on 401ks (59% yes); value of their home (56% yes), or stocks and investments (54%).
- Almost half the electorate says they intend to continue working rather than retiring (46%).
By Age Cohort
We took a look at intentions for financial plans by age cohort, as shown in the chart below.
Baby Boomers: Older Americans are most reliant on Social Security (90%) and personal savings (80%). Six out of ten are relying on a pension or annuity (60%) or value of their homes (61%). One out of 4 intend to continue working rather than retiring.
Gen X: This group intends to rely on Social Security (77%) and personal savings (72%), followed by a 401K (60%). There is more reliance on stocks/investments (48%) and value of their homes (51%) than a pension or annuity (41%). More than half intend to continue working (53%).
Millennial/Gen Z: Despite their young ages, almost 70% plan to rely on Social Security (69%). Personal savings are the income stream they intend to rely on most heavily (78%), with 68% planning on a 401K. One-third (33%) intend to include bitcoin or another form of crypto into their financial plans.
Confidence In Retirement Plan
Across age groups, there is some level of confidence in retirement plans but only somewhat confident (42%) rather than very (19%). Even among baby boomers who are of retirement age, the confidence level (72%) is predominately somewhat (45%) rather than very confident (27%).
Running Out Of Retirement Income
The concern about running out of income in retirement is a more potent concern than about the overall retirement plan. Two-thirds of the electorate (66%) is concerned about this, with 30% being very concerned.
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