In case you missed it, the Employee Benefit Research Institute (EBRI) released the findings of the 34th annual RCS. According to EBRI, “the RCS is the longest-running survey of its kind, measuring worker and retiree confidence about retirement.” The 2024 survey was conducted online from January 2 – January 31, and the over 2,500 respondents were Americans aged 25 and older, and the participants were almost evenly split between retirees and workers.
Confidence Is Rebounding
Back in 2022, confidence was soaring, with 80% of retirees and 70% of workers feeling assured they would have enough money to comfortably live out their retirements. That number took a hit in 2023, mainly due to inflation concerns, but it appears to be back on the upswing. In 2024, the rates recovered to 74% and 68% respectively as the government takes steps to battle inflation.
Worries Over Inflation Linger
While wage growth is now outpacing inflation growth, per the U.S. Census, Americans are still wary of the impact it could have on their retirement. Based on 2024 findings, 72% of retirees and 78% of workers identify this as a fear, though those numbers decreased from last year. And it seems we’re feeling better about the economy overall with significantly fewer respondents expressing concern over the possibility of an upcoming recession.
“While wage growth is now outpacing inflation growth, per the U.S. Census, Americans are still wary of the impact it could have on their retirement.”
Retirement Income
Social Security still looms large in the retirement landscape, with 88% of workers expecting it to be a source of income in their later years. Interestingly, 62% of retirees report Social Security as a major source of income, however, only 35% of workers expect it to have that much impact, perhaps signaling increasing reliance on workplace savings plans. Speaking of Social Security, it’s surprising that – given its important role in financial planning – only a quarter of retirees and 20% of workers feel they understand it very well.
Preparing For Retirement
More than half of the workers surveyed predict their magical retirement date will occur when they are 65 or older. Current retirees have beaten that estimate with 70% retiring before hitting the 65 milestone. If continuing some form of employment is in your retirement plan, you’re not alone; three-quarters of workers echo that sentiment. Again, retirees paint a different picture with only 30% of respondents clocking in during their golden years.
Another note – the top retirement planning activity for current workers is determining how the age at which they file for Social Security will affect their benefits. When in doubt, reach out. Contact an FRC® certified advisor to tailor a unique retirement plan that aligns with your goals.
