Concerns Rise Among Americans About Running Out of Retirement Savings

A recent survey by BlackRock reveals a notable increase in retirement confidence among Americans, with 68% feeling on track for retirement, up from 56% last year. However, despite this optimism, over 60% of respondents express concerns about outliving their savings during retirement, a sentiment that has persisted for three consecutive years. This anxiety spans across generations, with 69% of Gen Z respondents indicating worries about their financial security in later years. Rob Crothers, head of U.S. retirement at BlackRock, noted that while confidence fluctuates with market conditions, the data reflects a complex narrative influenced by gender, generation, and access to retirement plans. Supporting this, Vanguard reported a significant rise in average balances in employer-sponsored retirement plans, reaching $134,128 in 2023, a 19% increase from the previous year. However, the median balance of $35,286 still falls short of the $1.46 million that Americans believe is necessary for a comfortable retirement. The financial strain is particularly acute for low-income Americans, who are grappling with the ongoing effects of inflation, which, although reduced from its peak, remains above the Federal Reserve's target. Comparatively, prices have surged by 20% since January 2021, prompting many to reassess their retirement plans. A separate survey by Nationwide indicates that over a quarter of non-retired investors may need to return to work due to insufficient savings, with 19% doubting their ability to save enough for retirement. Rona Guymon, senior vice president of Nationwide annuity distribution, highlighted that the belief that over $1 million is necessary for a comfortable retirement could deter even the most dedicated savers from pursuing their retirement goals.