Retirement Confidence Dips for Middle-Income Americans
Retirement attitudes are shifting for middle-income Americans, and not in an upward swing.
Findings from CNO Financial Group show that workers between the ages of 50 to 85 feel “increasingly unprepared” for retirement, as high costs continue to impact short- and long-term savings.
Among workers in this group, 32% feel less confident about their retirement plans compared to a year ago and 41% question whether they’ll have adequate savings in retirement. This was especially so for those nearing retirement, at 49% of pre-retirees who doubt they’ll have enough money to last their golden years.
Workers are feeling especially unnerved when thinking about the state of the economy today. From high inflation to potential Social Security insolvency in the coming years, 44% of Americans ages 50 to 85 report feeling more anxious this year about their personal finances.
Further, inflation (27%) was reported as a top concern for middle-income Americans between the ages of 50 to 85, followed by fears of outliving money (23%), and cuts to Social Security (18%), noted the findings.
“Middle-income Americans are under pressure as they navigate rising costs, market volatility and questions about the future of government programs and safety nets,” said Scott Goldberg, president of Consumer Division at CNO Financial Group. “This economic environment is challenging their sense of preparedness. Our survey underscores how critical it is for individuals to plan ahead to build financial resilience and protect their retirement.”
The state of Social Security solvency is especially unsettling for Americans, many who believe the federal program will face cuts in the coming years. Reports predict that Social Security benefits could sustain a 17% reduction by 2035 unless Congress intervenes before.
According to the findings, 43% of middle-income Americans ages 50 to 85 feel less confident that Social Security benefits will be available “when they need it,” while close to half (47%) expect the federal government to cut Medicare benefits in the future.
Others have unrealistic expectations over what the federal benefits can cover, the report states. Half of middle-income Americans in this age group expect Medicare to cover all long-term care needs, even though this type of coverage is limited, CNO Financial Group explains.
“Medicare and Social Security provide good coverage and support but were never designed to cover all costs in retirement. The data paints a clear picture: many Americans lack confidence that these long‑standing programs can meet their financial needs,” Goldberg said. “It’s essential that middle-income Americans understand what benefits are available so they can protect what matters most to them as they near retirement.”
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.