About one in three Americans believe that they won't have enough money to retire, a new report by AARP showed.
The survey, titled Financial Security Trends, showed a declining sense of financial security, particularly among men. 42% of male respondents aged 30 and above describing their financial situation as "only fair" or "poor," compared to 34% in January 2022. Increased concerns include managing debt, building savings, and covering basic expenses.
The decline in men's sense of financial security could be attributed to challenges in managing debt, as 43% now carry a credit card balance compared to 38% in 2022. Additionally, fewer men have emergency savings (62% compared to 69% in 2022), and a smaller percentage believe that they are saving adequately for retirement.
Despite the decline, men still fare better than women in several indicators. They are more likely to have emergency savings, less likely to be worried about managing debt, and tend to save more for retirement.
Economic factors significantly impact financial security. Lower inflation rates and stock market rebounds contributed to a relatively steady financial security outlook from January 2023 to January 2024. However, concerns persist regarding rising prices and debt levels.
Looking at retirement savings specifically, only 36% said they expect to have enough money for that moment in their lives if they continue saving at the current rate, while 31% don't know whether they will have enough.
Moreover, to 33% who are certain that won't be the case for them. The figure was 29% in January of 2023. "The increase in the share of retirement savers who don't expect to have enough money in retirement comes specifically among adults 50-plus, that is, those much closer to retirement age," the report added.
"These concerns highlight the importance of having a plan for retirement. Plans need to address not only how to build savings during working years but also how to spend money in retirement in a way that will allow it to last," it concluded.
As for Latinos in particular, a separate survey showed that, at least in the short term, members of the demographic was more optimistic about their personal finances and the economy.
The new study by the Florida Atlantic University Business and Economic Polling Initiative (FAU BEPI), showed that the Hispanic Consumer Sentiment Index (HCSI) increased to 85.3 in the first quarter of the year, an uptick from 76.3 in the fourth quarter of 2023
In the first quarter of 2024, 59% of Hispanics said they are better off financially than a year ago, compared to 48% from the last quarter of 2023.
Similarly, during this time period, 71% of Hispanics indicated they will be better off over the next year compared to 68% in the last quarter of 2023.
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