US Snapshot

Our Global Retirement Reality Report helps us identify shifts in how individuals prepare for retirement, how confident they feel, and what resources they will need to succeed. The results of our 8th annual report in December 2024 reflect a slightly more positive outlook, but current uncertainty reminds us that circumstances and sentiment can change very quickly – that’s why it’s important to continually take the pulse of retirement savers to learn more about what they need.

The way Americans think about retirement continually evolves—and sometimes changes abruptly—as world events and personal experiences shape their perceptions. In 2024, many economic headwinds diminished: Inflation moderated, interest rates declined, equity markets strengthened, and people worried less about recession. As a result, many Americans ended the year somewhat more confident about their retirement prospects than they had been a year earlier. However substantial concerns remain and survey respondents were eager to learn how to turn an improved sentiment into a solid retirement plan.

Key finding 1: Americans continue to worry about preparing for retirement, even as confidence overall edged higher.

Retirement is complicated, with many Americans concerned about whether they will outlive their savings, how they will pay for medical expenses, and whether Social Security will be there when they need it. Fewer than four in 10 people (38%) expected to be very or extremely financially prepared for retirement. While this is up from 32% from the previous survey, a substantial majority of Americans remained concerned.

Americans’ overall confidence in their ability to retire at some point improved by eight percentage points, from 54% to 62%, with certain demographic groups showing particular optimism. Young people were more likely to plan to fully retire, with 75% of those respondents between the ages of 18 and 34 expecting they will do so completely – perhaps not surprising, given the longer runway ahead and a less clear picture of what will be required to make it to retirement. This compared to just over half of the 45 and 54 cohort. Men also were more likely than women to respond that they will fully retire (67% versus 59%).

However, Americans continued to have substantial economic concerns about being able to retire, as prices for basic needs such as food remained high and uncertainty about the economy’s direction persisted. As illustrated in figure 2A, inflation, economic conditions, and Social Security’s future ranked as the top concerns.

These particular concerns increase as people approach retirement. While these also were top considerations for younger people (18-34), that cohort is substantially less worried about each topic than those between the ages of 55 and 64.

Key finding 2: Early retirement is a goal for many Americans.

People decide to retire early for many reasons—both positive and negative. Some see the investment gains they’ve made in recent years or receive a windfall such as an inheritance that puts retirement within reach. Others worry that they’ll have to retire early because of a lost job or a health crisis. In fact, almost half of this year’s respondents expected to retire before 65, showing increased expectation of an earlier retirement from 2023. Financial resources may be at the center of this shift: people with higher income expect to retire earlier, with 53% of those making at least $200,000 a year planning to do so by 65, versus 39% of those earning less than $40,000.

While concerns exist regarding the future of Social Security, it remained a key component of retirement planning. Almost half (49%) of respondents intend to start collecting Social Security benefits between 62 and 65, and only 15% intend to wait until age 70 or later. Young people plan to start Social Security before 65 (37%) at a much greater rate than those near retirement (13%).

Key finding 3: Americans are saving more—and asking more from their investments.

With a lot of financial considerations on their mind—a yearning for early retirement, the future of Social Security, educational goals or a desire to leave a legacy—Americans set aside more money for the future in the second half of 2024. Respondents started saving more during the prior six months, with 37% of respondents increasing short-term savings and investments (up seven percentage points from July 2023) and 37% also increasing how much they were contributing to their retirement savings plan (up five percentage points). In addition, more than four in 10 people (44%) said they planned to increase their savings in the next six months.

However, savers don’t expect their funds to just sit there. People want investments to work for them, so they can build a more significant nest egg. Maximizing returns is the top priority (46%) cited by survey respondents, followed by minimizing expenses (31%), and an investment plan that considers individual circumstances (29%). Investment returns rate as the top concern for all demographic groups.

We’re ready to help savers get there.

While this year’s survey demonstrated increasingly positive retirement views, it’s important to acknowledge that the majority of American workers still do not feel highly confident in their financial preparedness to retire.
 

As workers’ vision of retirement shifts, you play a vital role in building stronger financial futures for millions. We’ve been partnering with institutions for over 40 years to provide investment solutions that make retirement more accessible, including our innovative Target Date Solutions built on decades of experience – expertise critical to making sure retirement plans evolve at the pace of participant needs.

Access previous Global Retirement Reality reports at ssga.com/gr3. 

Learn how we are helping shape a new era for retirement, reach out to our Defined Contribution team.