Only 16% of Americans think they will be able to retire when they want to, according to a new survey from FinanceBuzz.
Further, the survey found 13% of people with retirement accounts have decreased their monthly contributions as a result of current market conditions, and 15% of Americans have already withdrawn from their retirement accounts—two actions that could negatively impact a person’s timeline for retirement.
The latest survey by Delray Beach, Fla.-based personal finance site FinanceBuzz looks into how people are planning for retirement in the face of high inflation, a possible recession, and the high cost of living, exploring how market volatility is changing Americans’ retirement behaviors and their outlook on the financial markets.
When it comes to being able to retire when they want to, the survey found percentages increase with each succeeding generation. While only 11% of Baby Boomers reported being able to retire when they want to, the percentage increased to 15% for Gen X, 18% for Millennials and crested at 22% for Gen Z.
Perhaps more bleakly, while 16% of respondents overall think they will be able to retire when they want to, 23% think they will never be able to retire. Breaking it down by generation, Boomers are almost evenly split when it comes to whether they’ll be able to retire when they want to or will work until they die. About one-third of Gen X and Millennials expect to work until they die.
With the cost of living more than 9% higher than a year ago and the fastest pace for rising inflation since 1981, FinanceBuzz says individuals are making tough choices about where their current dollars should go. Increased prices may mean people will need to work longer to ensure they can retire with the lifestyle they want once they leave the workforce.
Additionally, the survey found many Americans aren’t feeling particularly hopeful about their personal financial situation. Forty-four percent of Americans report that their current financial situation is worse than a year ago, while 32% feel it’s the same and 24% say it’s better. Older Americans were most likely to report a decline, with 51% of Boomers reporting that their financial situation is worse now than last year.
Another interesting finding? Two-in-three people (66%) who held crypto in their retirement portfolio have reduced or abandoned their holdings.
SEE ALSO:
• Retiring (Much) Later: Average Age Up Big Since 1991
• Americans Raid Savings to Cover Increasing Costs