The Vast Majority of Americans Want to Retire Some Day — But a Shocking Number Haven't Started Saving Yet Some of the biggest roadblocks to saving come as no surprise.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- Fifty-three percent of people feel they're behind their peers in retirement savings.
- Respondents said they hope to retire at an average age of 60 — a perhaps unrealistic goal for the staggering amount of people who haven't begun saving.
With pension plans all but a thing of the past and inflation squeezing wallets across the U.S., it's perhaps more important than ever for American workers to put away enough money for retirement — and start early. Unfortunately, many of them are already behind.
According to a recent survey conducted by FinanceBuzz, more than half of Americans feel they are trailing behind their peers when it comes to retirement savings. The survey aimed to understand Americans' retirement plans, savings habits and financial outlook.
Related: Gen Z Is Banking More on Retirement Than Older Generations
Respondents said they hope to retire at an average age of 60, with baby boomers aiming for retirement at 65 and Gen Z for retirement at 56 — yet 28% of Americans haven't started saving at all, including 44% of Gen Z respondents.
And those who haven't started saving are well aware they're not keeping up: 53% of respondents feel they are behind their peers in retirement savings, and across the different generations, at least 44% in each generation feel behind in their retirement savings.
Not surprisingly, low earnings were identified as the biggest roadblock to retirement, with 41% of people citing insufficient income as a barrier to saving. Additionally, 40% of people mentioned inflation as a significant roadblock, while credit card debt was noted by one in three people. Student loan debt also adds pressure: Among respondents with student loan debt, 54% said that resuming student loan payments would cause them to contribute less to their retirement savings.
Related: You Need a Retirement Makeover. Start With These Six Steps.
When asked about sacrifices they would make to retire 10 years earlier, more than one-third of people said they would move to an area with a lower cost of living, 31% would avoid purchasing anything new for two years (except essentials), and 30% would consider taking on a second or third job.
