There’s a reason Social Security is called “the third rail of American politics” — as in, touch it and die. Most Americans – especially seniors – are fiercely protective when it comes to their retirement benefits.
That sentiment is reflected in a national poll of adults from Quinnipiac University that shows 78% of respondents oppose proposals that would raise the full retirement age for Social Security benefits from 67 to 70. Opposition remained steadfast even when respondents were asked whether they would support raising the full retirement age if it meant benefits would last longer, with 30% in favor and 62% against the move.
A financial advisor can help you integrate your Social Security benefits into an income plan to meet your needs in retirement. Find an advisor today.
The state of social security
While the system is in no danger of going bankrupt, the administrators who oversee Social Security and Medicare have reported that the surplus in the trust fund used to pay out some of the benefits will run out sometime in 2034. If payroll taxes supporting Social Security were gone, they would continue to generate revenue for benefits, but those collections would be about 20% less than the total amount needed. At that point, Congress would have to find other revenue or adjust benefit rules and payroll tax schedules.
Survey reveals deep fear
The level of concern surrounding financial security in retirement was reflected in the Quinnipiac survey.
For example, the biggest personal financial concern for respondents aged 50 to 64 was saving for retirement, with 25% saying this was their biggest concern. That was also the top concern for respondents aged 65 and over, with 26% saying they were concerned about saving enough for retirement.
“When it comes to the golden years, Americans, young, old and in between, share the same concerns,” said Osman Kilic, professor of finance and business at Quinnipiac. “There is a cloud of doubt about the quality of life they will have when they retire, especially among those between the ages of 35 and 64.”
The poll surveyed nearly 1,800 adults from across the political spectrum. While 29% of respondents identified themselves as Democrats, 27% were Republican. Another 29% said they were independent, while the remaining 15% of participants said they belong to a different political party or simply don’t know.
Of all respondents, 22% reported that inflation, higher interest rates and other elements of the current economy have caused them to reconsider when they can retire. Of respondents between the ages of 50 and 64, 32% say they have already postponed their pension plan.
More broadly, 52% of respondents said they would find it very difficult (25%) or somewhat difficult (27%) to come up with $1,000 in cash to cover unexpected expenses, while 42% reported having less savings than they did that a year ago.
When it comes to whether they can afford to retire, almost seven in ten (68%) say they are either very concerned (33%) or somewhat concerned (35%) that they will not have enough money will have to live comfortably during the crisis. pension.
Everyone’s situation is different. Consider a match with a financial advisor if you are interested in professional, personal retirement advice.
In short
The majority of Americans are strongly opposed to raising the full retirement age for Social Security, a move proposed by senators on Capitol Hill. A Quinnipiac University poll found that 78% oppose raising the full retirement age to 70, while nearly seven in 10 people worry about simply having enough savings for retirement.
Retirement planning tips
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If you’re still working, consider increasing the amount of money you contribute to your workplace retirement plan. Incremental increases can really pay off over many years. If you don’t have access to a 401(k) or other employee-sponsored plan, make sure you save in an IRA. SmartAsset’s retirement calculator can help you estimate how much money you will need in retirement and how much you are expected to have currently.
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A financial advisor can help you save and plan for your retirement. Finding a financial advisor does not have to be difficult. SmartAsset’s free tool matches you with up to three vetted financial advisors serving your area, and you can interview your advisors for free to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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Have an emergency fund on hand in case you encounter unexpected expenses. An emergency fund should be liquid – in an account that is not at risk of significant fluctuations like the stock market. The trade-off is that the value of liquid cash can be eroded by inflation. But with a high-interest account, you can earn compound interest. Compare savings accounts from these banks.
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The post Nearly 8 in 10 People Oppose Raising the Full Social Security Retirement Age appeared first on SmartAsset Blog.
