Most Americans say they can’t rely on Social Security for their retirement income | News [Boss Insurance]

Most Americans Say They Can'T Rely On Social Security For Their Retirement Income |  News


Majority of Americans don’t think they can depend on Social Security for their retirement income and are worried about their long-term financial stability, according to Allianz Life Insurance’s Q1 2023 Quarterly Market Perceptions Survey* Company of North America (Allianz Life).

Nearly three in four (74%) say they cannot count on Social Security benefits when planning retirement income. At the same time, 88% say having another source of guaranteed income beyond social security benefits is essential to having a comfortable retirement.

“Social Security benefits are often the backbone of a retirement strategy, but it can’t be your entire strategy,” said Kelly LaVigne, vice president of consumer insights, Allianz Life. “A solid retirement strategy will ensure that you have enough guaranteed income to cover your essential expenses. This guaranteed income can come from social security benefits as well as other investments and protection products such as annuities.

Americans remain cautious about investing

Fewer Americans are worried about a major recession around the corner (57%) than last year. Yet 41% say they fear being laid off due to an economic downturn in 2023.

Moreover, most Americans are still very cautious when it comes to investing. More than half (63%) keep more money out of the market than they should and 62% prefer their money to stay in cash rather than suffer market fluctuations.

More and more Americans are also expressing concerns about their long-term financial health. For example, 78% fear they won’t be able to afford the lifestyle they want in retirement due to the rising cost of living. This figure is up from 73% last quarter and 68% in Q1 2022. Meanwhile, 66% fear that if they don’t increase their retirement savings quickly, it will be too late to have a comfortable retreat.

“A solid retirement strategy will address potential risks such as inflation and taxes,” LaVigne said. “You can’t prepare for everything, but you can prepare for everything – if you start preparing for retirement early.”

Gen Xers worry about long-term finances

Gen Xers, born between 1964 and 1978, worry about their retirement and long-term financial stability.

  • 43% of Gen Xers are concerned that their employer will suspend their 401(k) matching, compared to 38% of millennials (born between 1979 and 1996) and 24% of baby boomers (born between 1945 and 1963)
  • 67% of Gen Xers say they keep more money out of the market than they should, compared to 66% of millennials and 54% of baby boomers
  • 85% of Gen Xers fear they won’t be able to afford the lifestyle they want in retirement due to the rising cost of living, compared to 80% of millennials and 72% of baby-boys. boomers

“Generation X is entering and entering critical years of retirement readiness,” LaVigne said. “A lot of people are often in their peak earning years in their 40s and 50s and are finally able to really save a significant amount of money for retirement. This is when they need to strategize and really focus on how they prepare for the lifestyle they want in retirement.

*Allianz Life conducted an online survey, the Quarterly Market Perceptions Study 2023 1Q in March 2023 with a nationally representative sample of 1,005 respondents aged 18 and over.

About Allianz Life Assurance Company of North America

Allianz Life Insurance Company of North America, one of the FORTUNE 100 Best Companies to Work For® and one of the Ethisphere World’s Most Ethical Companies®, has delivered since 1896 in helping Americans achieve their retirement income goals and protection with a variety of annuity and life insurance products. In 2021, Allianz Life provided additional value to its policyholders through distributions of over $10.6 billion. As the leading provider of fixed index annuities, registered indexed annuities and fixed index universal life insurance, Allianz Life is part of Allianz SE, a global leader in the financial services industry with approximately 150,000 employees in over from 70 countries. Allianz Life is a proud sponsor of Allianz Field® in St. Paul, Minnesota, home of Minnesota United of Major League Soccer.

Coverage is backed by the financial strength and claims-paying ability of Allianz Life Insurance Company of North America. Products are issued by Allianz Life Insurance Company of North America.

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SOURCE: Allianz Life Assurance Company of North America

Copyright BusinessWire 2023.

PUBLISHED: 04/10/2023 10:15 AM/DISC: 04/10/2023 10:16 AM

Copyright BusinessWire 2023.