Americans are living longer, but they aren’t financially ready for it.
Saving for retirement is one of the “top challenges for employees,” according to research from Prudential Financial.
Its online survey of roughly 3,000 full-time employees and 750 employers found a striking gap in perception: Roughly three in four employers believe their benefits support retirement savings, while only 35% of employees say the same.
“Ultimately, a lot of employees just need help,” said Michael Estep, president of Prudential Group Insurance. “They’re living paycheck to paycheck – it really does come down to financial support.”
How do you save for tomorrow when you can’t afford today?
The new retirement risk: living too long
Pew reports that the number of Americans living to age 100 and beyond is expected to quadruple by 2050.
A joint study by the Nationwide Retirement Institute and the American College of Financial Services suggests that workers and retirees may need to stretch their savings over 30 to 40 years of retirement – well beyond what most have prepared for.
But only 29% of Americans say they want to live that long, largely due to fears around declining health and “deep financial anxieties.” Roughly three in four say they “fear they’ll run out of money before they run out of time.”
That short-term financial stress dominates their day-to-day decisions, and long-term planning often takes a back seat.
Saving for tomorrow is getting tougher
Inflation and global trade pressures – like tariff-driven price increases – are making it hard to save today, let alone for decades in the future.
According to the joint research, two out of five working Americans say they plan to “delay retirement due to inflation.”
Debt.com’s recent reporting echoes the strain. “Americans Say Pay Hasn’t Kept Up with Prices,” a survey of 1,000 U.S. adults found that 46% say their income hasn’t kept pace with the rising cost of living. And 57% report living paycheck to paycheck – up from 48% in 2016.
In “Older Americans Worry They Can’t Make Their Savings Last,” the trend is clear: more people are borrowing against their retirement accounts. According to Vanguard, hardship withdrawals from 401(k) plans are at an all-time high.
So, what can Americans do today to combat economic uncertainty better while planning for a longer life?
“When people think seriously about living longer, it becomes clear that physical, mental, and financial health go hand in hand,” said Kristi Martin Rodriguez, leader of financial services marketing and the Nationwide Retirement Institute. “Just as we encourage healthy habits to support longer lives, we need to help build strong financial habits that ensure people can thrive well into their later years.”
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