A new report from policy and advocacy organization Economic Innovation Group (EIG) surveyed American voters and found that 82% believe that retirement security is a problem for the country. The “Retirement Security and Wealth Attitudes: National Voter Survey,” conducted by Echelon Insights, also found that 91% agree that all working Americans should have the ability to participate in a retirement savings plan.
“American voters across the political spectrum agree that retirement security is a serious challenge for the country,” said EIG President and CEO John Lettieri.
Financial Future Doubts
Likely enhanced by the economic uncertainty brought on by the coronavirus pandemic, many of the respondents expressed doubts about the stability of their financial future:
- One-third of those surveyed are not confident that they will have enough savings to live comfortably when they retire
- Of the 41% who do not have a retirement savings account, 44% say they do not have money to save after expenses
- 82% agree the ability of low-income Americans to save for their future is a problem for the country
- More than nine in 10 Americans agree that Social Security alone will not be sufficient for retirement
Support spans political aisles
The report also found extensive bipartisan support that all working Americans should have access to the same retirement savings plan as government employees (78%). EIG has authored a proposal, penned by economists Dr. Kevin Hassett and Professor Teresa Ghilarducci, that would give low- and moderate-income workers access to a new retirement savings program, modeled after the very successful federal Thrift Savings Plan, which is available only to federal employees and those serving in the military.
After learning more about the proposal, the survey respondents reacted favorably:
- Support jumped to 63% (from 55%) after learning more about the proposal that would offer government matched retirement contributions to low- and middle-income working Americans
- The proposal garnered more support than other prominent wealth building plans such as universal basic income (47%), child allowances (41%) and baby bonds (40%)
Adds EIG’s Lettieri, “We already know that tens of millions of workers aren’t participating in a retirement savings plan and therefore are missing out on a critical means of building wealth and financial security. These new findings underscore the need for Congress to take action to ensure that federal policy provides much-needed support for the workers that need it most.”
Lynn Brackpool Giles is a contributing editor to 401(k) Specialist. Giles is a former Managing Director of Communications and Consumer Services for the Financial Planning Association (FPA), where she oversaw all corporate, legislative, and consumer communications. In her current journalistic practice, she is a frequent contributor to numerous financial services industry publications.
