Two thirds of Americans now believe retiring between ages 65 and 70 is beyond reach, according to new research.
Of the 1,000 adults aged 18-65 who took part in the survey from TIAA, just 37% say retiring “on time” is realistic for them and 30% of respondents are not confident they’ll meet daily living expenses in retirement.
With budgets tight, one in five Americans admit they aren’t saving at all for retirement, and 5% say they’ve never planned to begin. Another 24% expect they’ll need to keep working past their intended retirement age just to cover basic costs.
Faced with that uncertainty, some are turning to improbable tactics such as the 10% of respondents who view playing the lottery or acquiring luxury handbags as viable means to fund retirement.
"Americans clearly want peace of mind in retirement, but the reality is that too many people either aren't saving enough or aren't confident in their ability to plan," says Kourtney Gibson, CEO of Retirement Solutions at TIAA. "We're seeing the consequences of a system that has left millions without proper guidance. TIAA's findings reaffirm the importance of products that offer actual guarantees, personalized financial advice, and workplace retirement plans in helping people achieve the retirement security they deserve."
The survey reveals that 92% of respondents express interest in having a guaranteed income stream (beyond Social Security) to support everyday expenses in retirement, with 44% stating that COLA is not keeping up with the reality of the cost of living.
However, while 64% say they’d consider an annuity, about one in four state they lack sufficient knowledge to feel comfortable investing in one.
"Historically, Social Security has been relied upon for retirement, but it was never designed to be the only source of income," says David Nason, CEO of TIAA Wealth Management. "With the support of professional financial advice, Americans must protect against the risk of outliving savings by building a holistic financial plan that includes long-term income solutions to supplement Social Security."
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