Americans of all generations are feeling more confident about their retirement, except for one major concern: Their savings lasting the length of their sunset years.
The proportion of Americans who feel on track for retirement surged to 68%, from last year’s 56%, BlackRock’s ninth annual Read on Retirement survey published Wednesday found. Still, more than 60% of the survey’s respondents said they’re worried about outliving their nest eggs.
The concern is shared across generations, from those furthest from retirement to those who are soon to be leaving the workforce for good, according to the investment management firm.
- 69% of Gen Z, those born between 1997 and 2012 and the youngest generation surveyed, said they’re concerned about their savings lasting through retirement.
- 56% of millennials, those born between 1981 and 1996, said the same.
- And 63% of Gen X, the group next up for retirement who are generally in their late 40s and 50s, are worried about the longevity of their savings.
Similarly, 65% of women and 57% of men of all generations said they worry about outliving their savings.
“Confidence in retirement has varied for the last nine years — and while we have seen increases when markets are up — when we look at sentiment broken out by gender, generation, and access to a retirement savings plan, it tells a complicated story,” Rob Crothers, head of U.S. retirement at BlackRock, said in a statement.
The Social Security Administration warned in March 2023 that the trust funds on which roughly 66 million Americans rely will be depleted in 2034, moving up the timestamp a year closer from its previous estimate.
Meanwhile, life expectancy for the total U.S. population is expected to climb to 85.6 years in 2060, according to the Census Bureau. That would mean the average American would live off of retirement savings and social security for more than 20 years if they retire at 65. This year alone, more than four million Americans will turn 65, the average retirement age — the largest wave of Americans reaching the retirement age in history, according to Northwestern Mutual.
BlackRock chief Larry Fink hasn’t shied away from criticizing the U.S. retirement system. In his annual letter to investors this March, the 71-year-old executive argued that the retirement age, currently 65 years, should be raised to help ease pressure on the buckling social security system that keeps most retirees afloat.
The goalpost keeps moving for Americans, too. The so-called “magic number” (how much money U.S. adults say they need to retire comfortably) has ballooned more than 50% in the past four years, hitting a whopping $1.46 million this year, according to a recent study by Northwestern Mutual.
In spite of this, 77% of Gen Z feels on track to retire comfortably — the most of any generation, BlackRock’s survey found.