You’ve spent years logging hours at the office so you can support yourself and your family. But now that you’ve hit your 60s, it’s time to clock out one last time, book that long-awaited cruise to Cancun and finally (finally!) relax.
At least that’s what you once thought retirement would look like.
Except now, many Americans fear they’re going to spend their golden years fretting about whether they have enough funds to last the rest of their lifetime.
That’s according to the results of a new survey by Wells Fargo, which found that nearly half (46%) of American investors, including 50% of non-retirees and 36% of retirees, are either “very” or “somewhat” worried about outliving their savings and having to depend on Social Security. Though when survey respondents were asked to factor in Social Security payments, most (69%) said they were “highly” or “somewhat” confident they’d have enough money to live the lifestyle they wanted.
As for everyone else, they’re likely afraid that Social Security will run out by the time they retire—which could very well happen, given the recent recession and a rapidly aging Baby Boomer population. On average, non-retirees predict Social Security will make up 26% of their annual income, while current retirees say Social Security comprises about 30% of their income.
So are Americans’ worries justified? Maybe so, Karen Wimbish, director of retail retirement for Wells Fargo, tells USA Today. She points out that many people simply haven’t saved sufficiently, while others are unnecessarily wary of investing in the stock market.
In fact, the survey, which polled over 1,000 people with at least $10,000 in savings and investments, found that non-retirees say they have an average of just 40% of their retirement savings invested in stocks.
As for saving more, another recent survey found that, while more than half of Americans with significant savings are afraid of running out of money during retirement, they aren’t willing to tweak their lifestyle in order to sock away additional funds.
Concerned about running out of cash during retirement—and curious why investing is a great way to grow your savings? Learn more here.