While Americans agree that the U.S. faces a retirement crisis, fewer say the tax overhaul passed last year is helping Americans prepare for retirement, and millennials are the most insecure about their retirement prospects.
According to new research released Tuesday by the National Institute on Retirement Security and Greenwald & Associates, on the political front, 80% of Democrats, 75% of Republicans and 75% of independents agree that there’s a retirement crisis.
Meanwhile, while those polled believe government plays an important role in helping workers prepare for retirement, only 34% of those polled said the tax oerhaul passed in 2017 is helping on the retirement front, with 84% stating that leaders in Washington have no idea how hard it is to prepare for retirement, and 80% stating that government should ease the path for employers to offer pensions.
The online poll was conducted Jan. 7-16, with 1,250 individuals age 25 and older completing the survey. NIRS is a research group focused on pensions.
According to the poll, about two-thirds of Americans believe that pensions are better than 401(k) accounts in terms of ensuring retirement security. Also, millennials are the most worried about a financially secure retirement (72% ), but is the generation most willing to put away more money now for retirement (60%).
“Americans are divided on so many issues, but not when to comes to their economic insecurity in retirement,” said Diane Oakley, NIRS executive director, in releasing the survey results.
“Democrats, Republicans and independents alike are concerned that they won’t be able to achieve financial security in retirement and that managing investments in retirement is problematic.”
While Oakley said that Americans are “disappointed with national political leadership on retirement policies, they are highly supportive of state efforts to bolster retirement readiness.”
The poll found that 74% of Americans would participate in the new state-sponsored retirement plans, she said, “and that portability and monthly income are features that drive their support.”
“If the new Congress is serious about addressing Americans’ retirement anxiety, a bold first step would be strengthen Social Security and make it easier for companies to offer pensions,” Oakley stated. “A majority of Americans agree that government needs to increase Social Security contributions from both employers and workers, and 76% say that the disappearance of pensions is killing the American dream.”
As to millennials, they are also the generation most likely (77%) to believe they will have to work past normal retirement age to have a secure retirement.
“More than half of millennials are willing to save 5% or more to help ensure a financially secure retirement, which is more than double the response for that level of savings from boomers and Gen X,” the survey found.