A recent Transamerica report sheds light on the growing concerns among middle-class Americans about their retirement prospects. The report surveyed over 10,000 people, with about half falling into the middle-class category, defined as those with annual household incomes between $50,000 and $199,999. One of the primary fears among middle-class respondents is outliving their retirement savings.
In both the $50,000 to $99,000 and $100,000 to $199,000 income groups, 40% reported that running out of money in retirement is a major concern. This worry is compounded by the fact that middle-class Americans expect to live until a median age of 90, more than a decade longer than the current US life expectancy of 77.5.
Concerns about the future of Social Security are also prevalent, with approximately 39% of middle-class respondents fearing that benefits will be reduced or cease to exist by the time they retire.
Middle-class concerns about financial future
The latest Social Security and Medicare Board of Trustees report warns that the program will only be able to pay full benefits for a limited time without Congressional intervention. As a result of these financial insecurities, 52% of middle-class respondents plan to work after retiring, with 55% citing the need for extra income and 33% concerned about potentially reduced Social Security benefits. The 2024 presidential election has brought the future of Social Security and Medicare to the forefront, with Vice President Kamala Harris and former President Donald Trump both weighing in on the issue.
Trump has pledged to protect these programs for older Americans, while Democrats have accused the GOP of threatening to cut benefits and raise the retirement age. The anxiety surrounding retirement savings and Social Security underscores the precarious position of many middle-class Americans as they plan for their financial futures. With an uncertain economic landscape and potential policy changes ahead, these concerns are likely to remain a significant part of public discourse.
- BusinessInsider.”The middle class’s worst retirement fear”.
- CBSNews.”The new middle-class retirement plan: Working into old age”.
- FEDweek.”Expectations of Retirement Vary by Generation, Survey Finds”.