As they face a worrying gap in retirement savings, a majority of older US adults are feeling a declining sense of confidence, according to a new survey from AARP.
The survey highlighted a concerning trend among older Americans, with one in five adults over the age of 50 reporting they have no retirement savings. The survey also found that a significant majority, 61 percent, fear their financial resources will be insufficient for retirement.
The study also indicated a growing unease about financial security, particularly among men. Forty-two percent of men described their financial situation as either "fair" or "poor," a noticeable increase from 34 percent earlier in 2022. Despite these concerns, 40 percent of men actively saving for retirement believe their efforts are adequate, contrasting with only 30 percent of women.
Indira Venkateswaran, AARP's senior vice president of research, expressed concerns about the challenges facing retirees.
"Every adult in America deserves to retire with dignity and financial security. Yet far too many people lack access to retirement savings options and this, coupled with higher prices, is making it increasingly hard for people to choose when to retire," she stated.
Venkateswaran also highlighted that everyday expenses continue to be a major barrier to saving more for retirement.
The survey also shed light on the debt burden carried by older adults. About 30 percent of those who have credit card debt carry balances of $10,000 or more, with 12 percent carrying $20,000 or more, an increase from 8 percent a year earlier.
Despite the financial challenges, one-third of respondents remain optimistic about their financial situation improving within the next year. However, concerns persist with over one-third worried about covering basic expenses such as food and housing, and 70 percent are anxious about inflation outpacing their income.
Nancy LeaMond, AARP executive vice president and chief advocacy & engagement officer, emphasized the urgency of the retirement crisis.
"America is facing a serious retirement crisis. AARP has a long history of supporting legislation to expand access to retirement savings, but Congress must act more swiftly to provide the financial support older Americans need and deserve," LeaMond said.
She noted that while 19 states have initiated auto-IRA programs to help individuals without employer-sponsored plans – including eight that already have programs up and running – more action is needed both at the state and federal levels.
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