Americans Score Low Marks in Retirement Readiness
Americans are turning in low scores when it comes to retirement, finds new research by F&G Annuities & Life study.
The firm’s Retirement Reconsidered survey found that when grading their financial readiness in preparing for/in retirement, 32% of respondents gave themselves a score of C or below vs. 26% of those who gave themselves an A.
According to F&G, this mark decreases when asked how they would grade social connections in retirement, with 41% marking a C or below vs. 22% who gave themselves an A. When it comes to personal fulfillment in retirement, 28% of respondents rated themselves an A, while another 28% gave themselves a C or lower.
Even with the low scores, F&G’s study found that close to half of Americans nearing retirement are not working with a financial advisor. Further, 54% of Gen Xers have not leveraged help from a professional, up from 49% in 2024.
“Financial professionals play a key role in advising investors on how to meet both personal and financial goals,” said Chris Blunt, CEO of F&G. “Retirement isn’t just about how much you have saved, but what your life will look like in retirement, whether you are working part-time because you need the money or enjoy it for personal reasons. Financial professionals have an opportunity to help more Americans aim for an ‘A’ in retirement by guiding them to align their financial plans with the kind of life they truly want in their later years.”
The findings go hand-in-hand with additional research from the firm, which showed that over 70% of pre-retirees older than 50 admit to considering or even delaying their planned retirement date, as current market conditions lead some to reassess long-term plans.
Additional findings from the survey report that 23% of pre-retirees are sure they’ll push back their planned retirement date. The figure is a 9% jump compared to 14% just last year.
The reasons for the delay largely center around market conditions, as 50% of those over age 50 cite financial uncertainties and economic volatility for their reasoning in pushing back retirement. Moreover, 48% of respondents admit to being concerned over a lack of sufficient savings in retirement; 44% worry about inflation; 42% want better financial options and a larger safety net; and 34% express fears over a recession or stock market downturn.
Even retirees are considering re-entering the workforce, with 29% who say they are reevaluating returning to work.
“The current economic environment is creating significantly more stress and uncertainty for younger American investors, leading many to rethink their timelines for retirement as our third annual study shows,” added. “This shift means Americans near and in retirement are more likely to be working longer or delaying retirement altogether.”
However, others admit to wanting to return to work, with many enjoying the intellectual challenge/stimulation from working (42%), wanting more financial options (40%), or saying they don’t want to feel a lack of purpose (33%).
Either way, half of respondents to the survey agree in needing to either invest or increase their investments in guaranteed income products.
“Amid this dynamic, the need for guaranteed income from products like annuities becomes increasingly important to maintain a quality of life they are accustomed to through retirement,” said Blunt.
SEE ALSO:
Retirement Readiness Holds Steady in Q2
Americans Facing Harsher Financial Conditions Today
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
