A new survey from a global investment firm has uncovered a rare point of consensus among Republicans and Democrats: America is facing a retirement savings crisis. The firm asked 1,000 registered voters for their thoughts on retirement security in America. The responses transcended party lines.
When voters were asked if they think there is a retirement savings crisis in this country, 93% of Republicans, 86% of Democrats, and 94% of independents answered yes. Three-quarters of Republicans expressed concern about not being able to maintain their standard of living in retirement, a sentiment shared by three-quarters of Democrats and a slightly smaller share of independents. The survey found broad bipartisan agreement on several other metrics of retirement security:
Republicans expect to need $2.1 million in savings to get through retirement, on average, compared with $2 million for Democrats and $3 million for independents.
Despite these savings targets, roughly two-thirds of respondents across all party lines reported having less than $150,000 saved for retirement. About one-quarter of Democrats and Republicans said they have no emergency savings, along with 29% of independents. The average Democrat and independent expects to retire at 64, while the average Republican expects to retire at 63.
Retirement experts say retirement security is a universal concern, one that cuts across party lines, even in politically fractious times. “Aging and preparing for a financially secure retirement is an ‘everybody’ issue and an ‘everybody’ opportunity. We’re all in this together,” said Catherine Collinson, CEO of the nonpartisan Transamerica Center for Retirement Studies.
Legislation on retirement security has also enjoyed a long history of collaboration on both sides of the aisle. Collinson cited the SECURE Act of 2022, which received bipartisan support and rewrote many rules for retirement saving to boost retirement security. The survey highlights two major issues facing Americans approaching retirement:
1.
Retirement security concerns cross party lines
A significant gap between how much Americans save for retirement and how much they think they will need. 2.
A discrepancy between the age at which Americans expect to retire and when they actually do. The average American retires at 62, but the average over-50 worker expects to retire closer to 67. Former President Donald Trump and Vice President Kamala Harris have notably different platforms on Social Security, which faces financial shortfalls in about a decade.
Harris has committed to “strengthen Social Security and Medicare for the long haul by making millionaires and billionaires pay their fair share in taxes.” This approach likely involves extending the Social Security payroll tax to higher incomes. Trump has taken a more ambiguous stance, pledging to protect benefits without detailing specific plans. He argues that economic growth and job creation could naturally boost payroll tax revenues, thereby shoring up Social Security.
Election-year surveys consistently show that older voters are vigilant about candidates’ positions on Social Security. AARP found that voters over age 50 in battleground states are more likely to support candidates who commit to protecting Social Security. “Our research finds that millions of Americans – tens of millions of Americans – are at risk of not being able to finance a secure retirement,” Collinson said, noting that Social Security is the top issue on people’s minds.
Research indicates that retirement security concerns are universal, even among wealthier Americans. Transamerica found that only 42% of Americans with more than $200,000 in household income are “very confident” they can maintain a comfortable lifestyle in retirement. “Even with objectively high net-worth individuals, the idea of retiring and starting to spend your own assets and the threat of running out of money is scary,” said a certified financial planner in St. Louis.
“And it doesn’t matter what your politics are.”
