Most Americans Do Not Expect Comfortable Retirement

“Not having enough money for retirement” was the number one consumer worry as ranked in Gallup’s most recent economy and personal finance survey.

Sixty-three percent of Americans polled said they were very or moderately worried about not having enough money for retirement, followed by 56% who had the same level of worry that they would not be able to pay medical costs associated with a serious illness or accident, and 55% who are worried they will not be able to maintain their current standard of living.

Retirement Income

Gallup also found the forces in the economy have led to a change in ideas about where Americans will receive retirement income.

One in five future retirees expect to use part-time work as a major source of their retirement funding, which is double the 10% who had the same expectation in April 2001, said the write-up of the results.

Fifty-four percent of those who have yet to retire said they expect their 401(k), IRA, Keogh, or other retirement savings accounts to be a major source of income in retirement, which was up to two points since last year.

Social Security was the second most cited expected source of retirement income (31% of respondents), which was an increase from 27% a year ago.

Meanwhile, the percentage of those looking to a work-sponsored pension plan as a major source of retirement income fell from 31% last year to 26% this year. The percentage looking to the equity in their homes for retirement income is down from 30% to 26%.

Only 17% of future retirees indicated they expect individual stocks or mutual funds to be a major source of their retirement income, down by nearly one-third from the 24% who thought these investments would be a major source for them a year ago, Gallup said. Also, the percentage expecting their regular savings accounts or CDs to fill this role dropped from 23% to 17%.

Gallup conducted telephone interviews with 1,021 adults, aged 18 and older last month. The results can be viewed here.