The survey, conducted by Gallup, has been tracking views on retirement in the U.S. since 2002. The data shows a consistent gap between the experiences of current retirees and the expectations of non-retirees. For instance, just over half of those aged 45-60 in 2002 felt they would have enough money to live comfortably in retirement.
Now, 79% of people in this age group, who have since retired, say they do. The survey reveals several reasons for this discrepancy between expectations and reality. Many retirees today benefit from lower living costs.
They may have downsized or moved to less expensive areas, and they may find healthcare costs more manageable than anticipated. Social Security also plays a crucial role.
Retirees report unexpected financial comfort
An average of 58% of retired Americans report Social Security as a major source of income. In addition to Social Security, many retirees have other income sources. Among those with at least one additional major income source, 78% say they are financially comfortable.
This figure rises to 82% for those with three or more income sources. Despite these positive findings, the survey also highlights that one in four retired Americans may not have enough money to live comfortably. Additionally, 8% of those aged 65 and above lived in poverty in 2021, according to Census data.
Looking ahead, as the population ages and the cost of living continues to rise, future retirees might face greater financial challenges. It’s crucial for individuals to plan carefully for retirement, considering their desired lifestyle and consulting with financial advisors.
