BlackRock Survey: Despite Improved Confidence, Americans Worry Their Savings Won’t Last Throughout Retirement

More respondents feel on track for retirement (68%) than last year (56%), but a closer look at the data reveals confidence gaps and uncertainty around saving and spending:

• Women are 30% less likely than men to feel on track for retirement
• Although 77% of Gen Z feels on track, 69% worry about their savings lasting through retirement
• Boomers who feel off track say uncertainty about how much to save and how much income they need are main factors, and 67% want education on income strategies well before retirement
• For the third year running, 60% or more of all respondents say they are worried about outliving their savings

While overall retirement confidence is up year over year for Americans according to BlackRock’s ninth annual Read on Retirement™ survey, a closer look at the data reveals rising optimism is not consistent for all respondents, and many are uncertain about long-term planning. Multiple groups of respondents across generation and gender cohorts reported confusion about how much to save, worries about outliving savings, and uncertainty in how much income they will need in retirement.

Anne Ackerley, Senior Advisor on Retirement, BlackRock, said, “The journey to retirement is personal, but the challenges are shared. Our research continues to underscore how complicated the path is for Americans when planning for retirement. This is an important moment to rethink retirement, and we are committed to convening conversations around ways we can make retirement investing simpler, more accessible, and more affordable for as many people as possible.”

Importance of Access

BlackRock’s report highlights how access to solutions that make it easier for people to save and invest for retirement could help more individuals feel more secure. Sixty-eight percent of savers with access to a retirement plan at work believe they are on track with retirement savings, up 12% from last year, due in part to improved market conditions. But for those who feel off-track, long-term uncertainty about how much savings (41%) or retirement income they will need (43%) are top of mind – indicating access to better planning tools and solutions could help. Uncertainty is even higher for respondents without access to a workplace savings plan: only 47% say they feel on track for retirement in general, consistent with responses from the previous two years (51% in 2023/2022).

Employers Can (and Want to) Help

Employers are also increasingly concerned about their employees’ long-term retirement preparedness. Only 58% of plan sponsors believe participants are on track with their retirement savings, versus 64% in 2023. Additionally, 72% of employers feel the risk of outliving savings has become even more important in the current economic climate, and virtually all – 99% – of plan sponsors feel responsible to help. These employer concerns track with a top worry among survey respondents: for the past three years, around two-thirds or more of respondents fear they will outlive their savings, with 60% of respondents reporting this as a concern in 2024.

Additionally, the survey highlights contrasts between genders—with men more confident than women—and among generations.

Gender: A Confidence Gap

Only 59% of women surveyed report they feel on track for retirement versus 75% of men. Additionally, 70% of women agree it is difficult to know how savings will translate into monthly income, versus 56% of men, and 65% of women worry they will outlive their retirement savings, versus 57% of men.

Gen Z: “Ahead of their Time”

Gen Z feels most on track (77%) to retire with the lifestyle they want, yet 69% worry about outliving their retirement savings and 60% say they will put off planning for retirement income until they retire. Luckily, many Gen Z respondents are open to guidance – though 63% say they do not understand how to manage their retirement investments, 47% report they are working with financial advisors for retirement planning, with the majority (70%) reporting they found an advisor through their employer.

Millennials: “Feeling the Squeeze”

More than half (56%) of Millennials say they worry about outliving their retirement savings and report additional complications to their long-term planning. As many try to balance savings for both near- and long-term objectives, 62% report they also carry credit card debt - more than any other generation.

Gen X: “Coming into Focus”

Gen X is the least likely to feel confident about retirement, with only a little over half (60%) feeling on track, and 63% reporting they worry about outliving their retirement savings. Despite this, Gen Xers are the least likely to use financial advisors for retirement planning (40%). Over half (54%) of Gen X respondents who say they are not on track believe they should be saving more. However, only 31% of those eligible are electing to make catch-up contributions.

Baby Boomers: “Reflecting on Income”

Baby Boomers are closest to retirement, and some are already retired. Over two-thirds (67%) of Baby Boomers who are still working feel it would be helpful to receive education on retirement income strategies well before retirement. While most Boomers (68%) feel on track for retirement, those who don’t say uncertainty about how much to save (58%) and how much income they’ll need (51%) are factors. For retired Boomers, 85% report that secure income makes a bigger difference than they thought it would in retirement and 94% believe employers should prioritize providing employees with secure income options through workplace plans.

“Confidence in retirement has varied for the last nine years—and while we have seen increases when markets are up—when we look at sentiment broken out by gender, generation, and access to a retirement savings plan, it tells a complicated story,” said Rob Crothers, Head of U.S. Retirement, Global Product Solutions. “While there is no one, single retirement solution that works for all, we believe providing financial resources, strategies, and tools for all Americans is a critical first step in reducing complexity for those who are clearly struggling to understand their path to retirement.”

A Note to Editors

In addition to this year’s report, BlackRock brings the experiences of actual survey respondents and the stories of their retirement journeys to life through a series of videos called, “Retirement is Personal.” These videos take a deeper dive into the challenges, hopes, and worries of individuals in different stages of their retirement journey.

About The BlackRock Read on Retirement

The 2024 BlackRock Read on Retirement™ survey provides insights from a research study of over 450 large defined contribution plan sponsors, 300 retirement plan advisors, 1,300 workplace retirement plan savers, 1,300 independent savers and 300 retired workplace savers in the United States. The survey is executed by Escalent, an independent research company. All respondents were interviewed using an online survey conducted between January 29 and March 7, 2024.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

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