Many Americans are falling behind on their retirement savings, according to a recent Bankrate survey. A majority of workers feel pessimistic about their ability to retire comfortably, with 48% expressing doubts about reaching their savings goals.
Financial struggles such as high inflation, interest rates, and job market challenges are making it difficult for Americans to save for retirement. Some are prioritizing day-to-day expenses over retirement contributions, putting their future financial security at risk.
Bankrate’s Senior Economic Analyst, Mark Hamrick, notes the divide between those confident in their retirement savings and those who are not, highlighting the ongoing disparity between the “haves” and “have nots” in the country.
Given the sharp divide among those who express confidence, or lack of it, that they’ll be able to retire comfortably, we see a continuing pattern in our country of the ‘haves’ and the ‘have nots.
— Mark Hamrick, Bankrate Senior Economic Analyst
Bankrate’s key findings on retirement savings
57% of American workers think they’re behind where they should be on their retirement savings, including 35% who feel significantly behind.
In contrast, 63% of workers are contributing more or about the same amount to their retirement savings in 2023 compared to the previous year. 37% of individuals are either contributing less than they were a year ago or did not contribute to their emergency savings last year or currently.