Social Security

Report: More than 70% of workers worry Social Security won’t be there for them when it’s time to retire 

Catherine Collinson, Transamerica Institute: “Millions of U.S. workers are at risk of not achieving a financially secure retirement."

As the population ages and future funding to Social Security and Medicare is uncertain, workers want a strong retirement system to be a priority, according to the Transamerica Center for Retirement Savings (TCRS) in collaboration with the Transamerica Institute

A new report from the Transamerica Institute finds 73% of workers in the United States either strongly agree (33%) or somewhat agree (40%) with the statement that when they are “ready to retire, Social Security will not be there for them.”

Among baby boomers, that number is 61%, according to The Multigenerational Workforce: Life, Work and Retirement.

“Millions of U.S. workers are at risk of not achieving a financially secure retirement. The situation is intensifying with Social Security’s and Medicare’s projected funding shortfalls, population aging, skyrocketing costs of long-term care, and workers’ obstacles in saving and investing,” according to Catherine Collinson, CEO and president of the Transamerica Institute and TCRS.

As workers look ahead to their retirement years, only 1 in 5 of them say they are very confident that they will be able to live comfortably when they fully retire. And just over a quarter of workers (26%) feel strongly that they are building a large enough retirement nest egg.

While the vast majority (81%) of workers say they are saving for retirement through work plans such as 401(k)s, the report notes a “concerning percentage of workers are tapping into their retirement savings before they retire.”

It finds that 35% of workers have taken a loan, early withdrawal, or hardship withdrawal. A financial emergency is cited as the most frequent reason.

Against this backdrop, a majority of workers, 58% say a top priority for the President and Congress is to address Social Security’s funding shortfalls. Among baby boomers that number jumps to 78%.

You can read the full report here:  The Multigenerational Workforce: Life, Work and Retirement

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