Economy and Politics Shape the Middle Class's Retirement Concerns

Economy and Politics Impact Retirement Planning

As a retirement tsunami looms in the US, life after work is top of mind for many. And some Americans worry they'll survive longer than Social Security. On Wednesday, the Transamerica Center for Retirement Studies released its 2024 retirement outlook for the middle class. It delved into the financial concerns and retirement preparations for those with household incomes of $50,000 to $199,999 using a sample of just over 10,000 people—about 5,000 of which fit into the middle-class definition.

Key Findings: The Fears of Middle-Class Workers

As it turns out, those middle-class workers have their own worries about retirement. Their greatest fear across the board: Outliving their savings and investments. Among those with household incomes of $50,000 to $99,000, and those with incomes of $100,000 to $199,000, 40% of both groups said that sticking around longer than their nest eggs was one of their greatest fears in retirement.

Social Security and Future Concerns

That comes as middle-class Americans expect to live until age 90 on median, over a decade more than the US's current life expectancy of 77.5. For Americans age 65—which is roughly the average retirement age—life expectancy is 18.4 more years, meaning they'll have a good amount of years to live on savings or Social Security.

• 39% fear Social Security may be reduced or cease to exist.
• Social Security benefits will dwindle in 11 years without congressional action.
• 30% believe Social Security alone will allow comfortable living in retirement.

Uncertainly surrounding the future of Social Security has long had older generations concerned. According to the latest Social Security and Medicare Board of Trustees report, those relying primarily on Social Security could face financial challenges in retirement.