More than half of Americans need to catch up on their retirement savings.
While nearly 38% said they have started saving and investing early, six in 10 Americans admitted they’re behind when it comes to planning for the future, according to a new survey.
The Harris Poll in conjunction with TD Ameritrade polled more than 1,000 Americans to learn about their investing habits, finding that Gen Xers were the generation most likely needing to start picking up the slack on their retirement savings.
Seventy-three percent of Gen Xers admitted to falling back on their retirement savings, with inadequate income (31%) being the leader behind their shortcomings.
Millennials were the second most likely generation that admitted to needing to get started on their retirement savings, with 66% admitting they’re behind. Despite 30% saying they started saving early, housing costs and supporting family members financially were drivers as to why they’ve fallen behind.
However, Millennials haven’t lost hope for their future. Seventy-two percent said they felt it was completely possible to catch up on their long-term retirement savings, with 62% saying they felt confident they will retire by age 65 or earlier.
Gen Xers felt the least confident about retiring by age 65, with just barely over half of the respondents (52%) reporting they thought they could, which influenced 46% of Gen X respondents to think they could catch up on their savings by working longer hours.
When it comes to lifestyles, 87% of Americans said they would be willing to make sacrifices to their day-to-day in order to catch up on retirement, with packing lunch over purchasing lunch for work being the most popular response across all generations. Others said bringing coffee from home to cutting back on social endeavors, like going out with friends, would be considerable tradeoffs.
All generations, at least 70% of respondents, said they’d prefer to work part-time in retirement than delaying their retirement by a few years, according to the survey. More than half said they felt $1 million would be comfortable for their retirement.