Key Points
Almost half, 44%, of workers in a new CNBC poll are “cautiously optimistic” about their ability to meet their retirement goals, and 27% say they are “realistic” about that happening.
About half, 52%, of millennials and 47% of Gen Xers said “paying off debts or loans” is the main reason they feel behind in retirement planning or savings.
Eighty-two percent of workers in that survey say achieving a comfortable retirement is “much harder or somewhat harder” to achieve than it was for their parents.
Many American workers are optimistic about their retirement goals, but most believe it will be challenging for them to retire comfortably.
Almost half, 44%, of workers in a new CNBC poll are “cautiously optimistic” about their ability to meet their retirement goals, and 27% say they are “realistic” about that happening.
Even so, 82% of workers in that survey say achieving a comfortable retirement is “much harder or somewhat harder” to achieve than it was for their parents. A majority, 69%, are concerned about being able to afford to stop working or retire fully and 80% worry that Social Security will not be enough to live on in retirement.
The CNBC report, conducted by SurveyMonkey, polled 6,657 U.S. adults, including 2,603 who are retired and 4,054 who are working full time or part time, are self-employed or who own a business.
The decline in traditional pensions, the rising cost of health care and increasing life expectancy have contributed to workers’ need to rethink their retirement plans.
“Retirement itself is being retired,” said Joseph Coughlin, director of the Massachusetts Institute of Technology AgeLab. “Often, within a year, two years, they found out that, frankly, they either need more money or need something to do.”
Here are smart moves you can make at every age to make it easier to meet your retirement goals:
In your 20s & 30s: Maximize tax-advantaged savings
Many younger workers in the CNBC poll — including 43% of Gen Z and millennials, who are in their 20s to early 40s — are “cautiously optimistic” about their ability to meet their retirement goals.
For people in their 20s and 30s, “retirement” is far away and means having the financial freedom to be “working because we want to, not necessarily because we have to,” said certified financial planner Rianka Dorsainvil, founder of YGC Wealth in Lanham, Maryland, and a CNBC Financial Advisor Council member.
Starting to invest for retirement early, especially in tax-advantaged accounts, helps you make the most of your time investing in the market and leverage the power of compound interest.
Various work opportunities can offer flexibility in options to save for the future. Many people in their 20s may work a 9-to-5 job and have a “side gig” or part-time job in the evenings or weekends.
That means you could save in a 401(k) plan at work as well as a self-employed retirement plan, like a simplified employee pension-individual retirement account or Solo 401(k) on your own, said Nate Hoskin, a certified financial planner and founder of Hoskin Capital in Denver.
While you may have opened a 401(k) plan in your first job, aim to increase the percentage you contribute each year. Put in at least enough money to get the company’s full matching contribution.
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