Retirement Confidence Declined Despite A Surging Market

Despite the surging stock market from the March lows, trillions in liquidity support from the Fed, retirement confidence declined.

I have written on this subject previously regarding a 2018 Fox Business study. That study showed more Americans doubted they would be able to save enough for retirement than those confident of reaching their goals.

  • 37% are NOT confident they can save enough to retire
  • 32% ARE confident they can save enough.
  • 48%, however, don’t think their retirement savings will reach $1 million.

Another study in 2018 from Northwestern Mutual showed equally depressing statistics.

“Americans feel under-prepared for the financial realities of retirement, according to new data from Northwestern Mutual. Nearly eight in 10 (78%) Americans are “extremely” or “somewhat” concerned about affording a comfortable retirement. At the same time, two-thirds believe there is some likelihood of outliving retirement savings.”

Again, that was 2018.

Two years later, and with the market 22.5% higher, have things improved?

Retirement, Retirement Confidence Declined Despite A Surging Market

The Index

According to a recent update of the SimplyWise Retirement Confidence Index, the answer is “no.”

“With the unemployment rate remaining above 10%, the rise in {virus] cases and updated policies threaten to make the coronavirus-related layoffs and furloughs permanent.

In a country where most people live paycheck to paycheck, this could be devastating. Most Americans lack the savings to last them for even three months. Of course, that savings gap is all the more dramatic when it comes to saving for retirement. And with the havoc the pandemic has wrought, that savings gap seems likely to worsen.”

According to the July 2020 SimplyWise Retirement Confidence Index, 62% of Americans are more concerned about retirement today than how they were feeling about it a year ago. Such is up from 56% in our May 2020 Index. The survey also found that 70% of people in their 50s—who are nearest to retirement—are more concerned about retirement today.