Retirement Under a New Administration: What You Need to Know
Since the 2024 election, Americans have shown a renewed sense of optimism about retirement, but generational differences are becoming more pronounced.
Post-Election Insights: Retirement Confidence on the Rise, but Polarization Grows
According to PensionBee’s December 2024 Retirement Confidence Index, 60% of older workers (59+) feel positive about their retirement plans, a significant 15% increase since before the election. Younger workers (under 59) are also more optimistic, with 46% feeling confident, a 7% boost since October. However, alongside this positivity, younger Americans are increasingly uncertain about their financial futures. 30% now feel doubtful about their retirement plans, up from 25% pre-election, while only 21% of older Americans share this concern. This growing divide suggests that older workers may feel more secure in their financial standing, while younger workers face anxiety over issues like Social Security’s long-term stability and economic uncertainty.
The role of Social Security is central to this dynamic, reflecting the differing financial outlooks across generations. Among older Americans, 43% now view Social Security as a vital source of retirement income, a 5% increase since a pre-election survey. Younger workers are less certain, but 21% now see it as important, marking a 4% rise. Confidence in personal contributions is also growing. 39% of younger workers and 36% of older workers feel their retirement savings are on track, thanks to higher contributions and improved market conditions. These trends reflect a positive shift in financial preparedness, as more individuals take control of their retirement plans.
Yet, rising costs are casting a shadow over these gains, particularly healthcare expenses. 39% of older workers and 26% of younger workers report concerns about affordability, both up significantly from previous surveys. These pressures highlight the need for careful financial planning to address the escalating costs that threaten retirement security.
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Get startedParticipation Details: The survey data was gathered and sent out by Attest (an unaffiliated third party), to a total of 2,000 Americans across the two age groups. The following is a breakdown of participation:
- Retirement Group (Ages 59 and Above): 1,000 respondents
- Pre-Retirement Group (Under Age 59): 1,000 respondents
Voluntary Participation: Participation in the survey was voluntary. Respondents were free to decline participation or skip any questions they chose not to answer.
Use of Results: The aggregated survey results will be used internally to assess and refine our retirement planning strategies.
Investment Advice Disclaimer: Please note that the survey is for informational purposes only and does not constitute investment advice. The results will not directly impact any specific recommendations or financial strategies but may serve as a guide for understanding general client sentiment and needs. The data collected and shared for educational purposes is from Attest, which is an unaffiliated third party company. Any changes to your personal retirement plan should be discussed with your advisor.
Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.
