A recent report from the Transamerica Center for Retirement Studies sheds light on the concerns of middle-class Americans about their financial future in retirement. The study, which surveyed over 10,000 people with annual household incomes between $50,000 and $199,999, found that 39% fear Social Security benefits will be reduced or disappear by the time they retire. The biggest worry for many in this income bracket is outliving their savings and investments.
40% of those surveyed indicated that running out of money is one of their top fears. This anxiety is heightened by the expectation that middle-class Americans could live to a median age of 90, well beyond the current U.S. life expectancy of 77.5 years. Given this longer lifespan, the sustainability of Social Security is a major concern.
Middle-class financial anxiety
The latest report from the Social Security and Medicare Board of Trustees warns that without action from Congress, the program will face significant shortfalls, resulting in reduced benefits. Adding to these worries, a survey of 2,100 adults revealed that only 30% believe Social Security alone will be enough for a comfortable retirement.
The Transamerica report states that 52% of middle-class individuals plan to work after retirement, with 55% citing the need for extra income and 33% worried about lower than anticipated Social Security benefits. As the 2024 presidential election nears, the future of Social Security and Medicare is becoming a heated topic. Vice President Kamala Harris and former President Donald Trump have presented contrasting views on these critical programs.
Democrats have accused Republicans of planning to cut benefits and increase retirement ages, further intensifying the political debate around these issues that impact millions of Americans.
