Some Bay Area workers say they'll have to adjust lifestyles post-retirement
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Most Americans want to retire, but only half feel like they can save for the future, according to a new Axios-Ipsos poll.
Why it matters: Fewer workers have access to reliable pensions, writes Axios' Felix Salmon. Most Americans retiring now are the first generation to instead rely primarily on private savings to navigate the financial vortex once they age out of work.
What's happening: Just 36% of those 55 and older — nearing typical retirement age — say they'll be able to retire at the time they expected, according to the poll findings.
- One in five say they don't think they will ever retire.
Zoom in: We recently asked you, our readers, whether you felt concerned about your retirement plans. Those who responded had a range of concerns, including volatile financial markets, fluctuating balances of their 401(k)s and medical bills.
What they're saying: Madeline McKay, who retired five years ago at the age of 67 in San Francisco, said she relies on Social Security and her pension.
- She doesn't have as much money as when she was working but said she takes advantage of senior deals and has curtailed her lifestyle.
- "Still, I am truly enjoying my retirement and hope I never need to work again," McKay said.
Daniel Van Winkle, a San Rafael resident, said he'll "have to live a more austere lifestyle" because "the 401(k) promise was a lie that corporations gleefully went after."
- His 401(k) alone, he said, does not have enough funds for him to retire.
The big picture: The largest barriers to saving for retirement, according to AARP, are everyday expenses, the cost of housing and debt, Sophie Horiuchi Forrester, the regional director for AARP California, told Axios San Francisco via email.
- "Despite inflation slowing down, many older adults continue to express concern on saving for retirement and sustaining their lifestyle later in life," she said.
By the numbers: 30% of people still in the workforce plan to use a pension to help fund their future retirement, compared with 54% of retirees who say they're using pension money.
- David John, a senior policy adviser at AARP, tells Axios that for roughly half of workers, their employers don't offer retirement plans.
Of note: While Americans say retirement is on their minds, they're not likely to talk about it with others.
- 60% say they consider how they might be able to afford retirement often or sometimes, but 41% have never discussed saving for retirement with friends and 57% have never spoken about it with a financial planner.
The bottom line: Retirement may seem out of reach, but it remains a goal for most Americans, and those who have retired say they're content. 68% of retirees agree that they feel better than ever now that they've retired.