A recent report from the Transamerica Center for Retirement Studies has highlighted significant concerns among middle-class Americans regarding their financial security in retirement. The report, which surveyed over 10,000 people with annual household incomes ranging from $50,000 to $199,999, found that nearly 40% of respondents were worried about the future availability of Social Security benefits. Many expressed concerns about outliving their retirement savings and investments.
This concern is especially pronounced given that these Americans expect to live until age 90 on average, exceeding the current U.S. life expectancy of 77.5 years. The implications of a potentially diminished Social Security program are troubling for many. According to the latest Social Security and Medicare Board of Trustees report, the program may only be able to pay out full benefits for a limited time unless Congress intervenes.
Middle-class retirement security concerns
A survey of 2,100 adults indicated that 30% believe Social Security alone is enough for a comfortable retirement. However, individuals like a 63-year-old respondent expressed anxiety over the sufficiency of these benefits, fearing they may need to continue working indefinitely to make ends meet.
Social Security concerns are driving many middle-class individuals to plan for employment during retirement. Among those who intend to keep working after retirement, 55% cited the need for additional income, while 33% were motivated by concerns over potentially lower-than-expected Social Security benefits. As the presidential election approaches, the debate over the sustainability of Social Security and Medicare is intensifying.
