Americans are encouraged to look ahead and make sure that they will have the funds they need for a comfortable retirement. Currently, 46 percent of non-retired Americans expect to have enough money to live comfortably in their golden years. This number is up from only 38 percent last year.
Confidence in the Economy
How your portfolio performs is linked to the health of the economy, and more Americans feel good about the economy right now. They feel better about local housing prices, and a surging stock market gives them confidence that they will have the funds they need when it’s time to stop working.
The Optimism of Youth
The most optimistic age group is actually the youngest. An impressive 66 percent of non-retirees between the ages of 18 and 29 are confident that they will have the money they need to enjoy retirement. By contrast, only 38 percent of people between the ages of 50 and 64 have a positive feeling about their prospects during retirement. The younger generation also do not expect Social Security to fund their retirement, while older Americans are depending more on this social program to help them survive.
Still a Top Concern
While more people are confident that they will have the resources they need upon retirement, it is still a top concern for people of all ages. Young Americans believe that they will have to fund their own retirement, and they are confident that they can, but they do worry about being able to follow through with the plan and make it happen. They are optimistic that they will be able to accomplish their goals through the smart use of 401(k)s, Roth IRAs and other retirement investment vehicles.
Working Later in Life
Changes to Social Security mean that people have to work longer before they can start drawing benefits. This is critical to low income earners who need Social Security funds to cover their basic living expenses. While more people are confident about their ability to retire comfortably, it’s important to note that they probably will not be able to retire as quickly as they otherwise would.
Overall, this is good news for the country. It is a strong indicator that people are feeling more confident about the economy, and it’s also evidence that even the younger generations have faith in the country and overall economic stability.