A recent study by Fidelity found that retired Americans are feeling confident about their retirement, but those who are soon to be retired aren’t as sure. While 70% of retirees are feeling confident, 62% of pre-retirees aren’t sure their savings will last. Fidelity reports:
In contrast, Americans in their planning years believe they’ll need to be more self-reliant when it comes to their sources of retirement income: 61% say retirement savings from IRAs, 401(k)s, or other workplace and small business plans will be one of their biggest income streams, compared to about half of today’s retirees.
One thing pre-retirees have in common with retirees is that rising costs also represent an area of mounting concern. Among pre-retirees, 62% are uncertain whether their retirement savings will last forever, and a majority remain wary of the rising cost of health care and what portion of their income will be covered by Social Security. The good news: there are reassuring signs retirement savers are on the right track, as recent Fidelity data revealed strong growth and record-high account balances in 2024 among IRAs, 401(k)s, and 403(b)s—including a savings rate close to Fidelity’s goal of 15%, which includes both employee and employer contributions.
“The positive savings behaviors we’ve seen many Americans take, particularly over the last few years, sets an important foundation to build a successful retirement plan,” said Assaf. “Many understandably feel overwhelmed, but this shift in retirement income strategy in large part involves a recharting of the planning process. This starts with staying involved and aware of your broader financial picture and leveraging investment strategies to potentially help your money work harder for you.”
Read more about the state of retirement planning from Fidelity in the PDF below:
Fidelity retirementAction Line: When you want to talk about your own retirement plan and how you’re feeling, email me at ejsmith@yoursurvivalguy.com.
