We’re as confused as anyone else. A new AARP survey seems to directly contradict findings about Americans’ retirement confidence from the Employee Benefit Research Institute released just this week.
EBRI found 82% of retirees are confident in their ability to live comfortably throughout retirement, comparable to highs measured in 2005 and 2017, yet AARP finds 59% said it was only “somewhat likely” to “not at all likely” that the combination of their savings, investments and Social Security benefits would be enough to cover their financial needs throughout retirement.
This included more women (67%) than men (51%). Only 41% of all respondents said their retirement assets are “very” or “extremely” likely to pay for their needs through retirement.
The AARP survey is in line with a recent report from the U.S. General Accounting Office that found most households approaching retirement have low amounts of savings.
When polled about their “biggest financial mistakes” in the AARP survey, respondents said their most common mistakes related to not saving enough.
“The situation is serious, but not one that can’t be improved,” AARP financial ambassador Jean Chatzky, said in a statement. “No matter your circumstance, there are resources available to help almost anyone take simple steps to improve your finances, start a savings plan and get into the habit of putting away money on a regular basis.”
Other findings in the AARP survey
- 60% of respondents said they had made a New Year’s resolution or goal related to saving money during 2019—more than had made resolutions about losing weight, increasing their fitness or getting better organized.
- Yet, among those who made a savings resolution, 51% of the women and 35% of the men reported that they have not saved as much as they planned.
- Of those, 61% said unexpected expenses and 20% said a decrease in income—due to unemployment or a business slowdown—were the reasons they are not meeting their savings goal.
- Women expressed more financial regrets than men across a wider range of areas.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.