The Society of Actuaries’ biennial Retirement Risk Survey reveals Americans are facing growing challenges when it comes to retirement security, with inflation, caregiving responsibilities and unexpected financial shocks emerging as major concerns.
Why it matters: Now in its third decade, the Retirement Risk Survey provides deeper analysis on retirement timing and income, financial preparedness for unexpected events, the impact of family and caregiving, and also the use of technology with respect to retirement planning.
Go deeper:
- Most retirees indicated that their financial situation in retirement is broadly in line with what they anticipated. Social Security remains the foundation of retirement income for both groups; however, pre-retirees expect greater reliance on employer-sponsored savings and personal investments.
- Pre-retirees reported increased financial strain and greater concern about broader economic and disruptive events, while retirees generally seemed better able to adjust spending when finances tightened.
- Caregiving responsibilities are minimal for most respondents, but when applicable these responsibilities materially influence retirement planning and workplace benefit needs. Pre-retirees are more likely than retirees to provide or anticipate providing caregiving (often help with home upkeep, transportation, and daily activities).
- A notable share of pre-retirees provides financial support to adult children and parents/in-laws—often reducing their ability to save. Pre-retirees also feel less prepared than retirees for family-related retirement costs (e.g., funding for funerals/bereavement, home renovations and repairs, and medical emergencies and health issues), even as research suggests both groups may overestimate preparedness in general.
