Americans' confidence in their ability to retire remains shaken

Shutterstock // Oleg Elkov Americans’ attitudes about life after work have shifted some in the last two years as higher costs of living force them to reconsider retirement plans despite stable incomes and a healthy stock market. Wealth Enhancement analyzed Employee Benefits Research Institute data to illustrate how American confidence in retirement has changed amid rising inflation. The survey included responses from more than 2,500 Americans, roughly half of which were workers and the other half retirees. The good news is that 7 in 10 Americans feel “confident or somewhat confident” they’ll have enough money to live comfortably through their retirements. Just 1 in 5 (21%) workers are “very confident,” down from the historic high of 29% recorded in 2021, when interest rates were low, and middle- and lower-income families saw their bottom lines bolstered by COVID-19 pandemic stimulus. The ongoing high inflation comes at a pivotal moment for the U.S. population. By 2030, the entire boomer generation will have reached the traditional retirement age of 65. Starting this year, an estimated 11,200 Americans will turn 65 every day, according to an Alliance for Lifetime Income analysis. Financial advisors and other experts suggest saving 15% of your annual income, which may not be feasible for many Americans. Almost half of the nation lacks any savings in a retirement account. Depending on your earnings and how much you can expect from social security, financial advisors recommend that those retiring at 65 have assets totaling between 7.5 and 13.5 times their gross income at the time of their retirement. However, living cost increases since 2021 have hit workers in the lowest income brackets hardest thus far. Earnings reports from some of the nation’s largest companies indicate that consumers are pulling back on spending in places like fast-food restaurants and retail stores. As a new financial reality sets in, survey data shows that Americans are adjusting their retirement strategies and expectations. Most are optimistic, though fewer are as confident as they were before record inflation set in