Survey Insights

A recent survey conducted by the Employee Benefit Research Institute and Greenwald Research reveals significant anxiety among both workers and retirees regarding potential changes to Social Security and Medicare benefits. The findings indicate that a considerable number of Americans are worried about how these changes may impact their financial security in retirement.

Key Concerns Identified

The survey highlights that approximately 70% of retirees and around 80% of workers express concern about potential significant alterations to the American retirement system. Among the primary worries:

• Reduction in Social Security retirement benefits (60% of workers, 80% of retirees)
• Changes that could decrease Medicare benefits
• Potential tax increases linked to Social Security and Medicare programs

These concerns reflect the potential implications for financial planning as individuals approach retirement.

Confidence Levels in Social Security and Medicare

Many survey participants showed a lack of confidence that Social Security would maintain its current benefits, with nearly half of workers doubting they would receive similar support during retirement. Despite this, nearly 90% of workers believe Social Security will be a crucial income source during retirement, albeit with a disconnect between expectations and realizations noted.

Retirement Expectations vs. Realities

The findings also illustrate a gap between expectations of future retirees and the realities actually faced by current retirees. While about half of the workers anticipate a gradual exit from the workforce, reports indicate that only 30% of current retirees have engaged in paid work after retirement. This disparity emphasizes the need for realistic retirement planning.

Craig Copeland, EBRI’s Director of Wealth Benefits Research, stated, “Workers, in many cases, are planning for a retirement that is not likely to happen.” This highlights the importance of aligning retirement plans with practical outcomes observed in retirement.

Conclusion

As the survey underscores, it is essential for individuals to consider these concerns when planning for retirement. Policymakers, too, should take note of these sentiments as they navigate the future of social programs that are pivotal to American workers and retirees alike.