Democrats and Republicans agree that America faces a retirement crisis

USA TODAY

A new survey from a global investment firm recently uncovered a rare point on which Republicans and Democrats seem to agree: America faces a retirement savings crisis.
Legislation on retirement security has also enjoyed “a long history of collaboration on both sides of the aisle,” Collinson said.
That measure rewrote many rules for retirement saving, with a goal of boosting retirement security.
When the candidates talk Social Security, older voters listen Election-year surveys consistently suggest older voters are paying attention to what the candidates say about Social Security.
In a 2023 report, Transamerica found that retirement security rises with income – but only to a point.

POSITIVE

Republicans and Democrats appear to agree on one rare issue, according to a recent survey conducted by a global investment firm: America’s retirement savings crisis.

In America, just roughly 50% of households have retirement savings accounts. The Social Security benefits were never intended to cover all of the expenses associated with retirement, and the program may soon run out of money.

BlackRock questioned 1,000 registered voters in August about retirement security in the United States. The answers went beyond partisan differences.

93 percent of Republicans, 86 percent of Democrats, and 94 percent of independents responded in the affirmative when asked if they believed that the nation was experiencing a crisis in retirement savings.

Along with three-quarters of Democrats and a marginally smaller portion of independents, seventy-five percent of Republicans expressed concern about “not being able to maintain their standard of living” in retirement.

Republicans and Democrats are in agreement on issues related to retirement security.

Regarding a number of additional retirement security metrics, the survey revealed widespread agreement between the parties.

In contrast to Democrats who anticipate needing $2 million and independents $3 million in savings to get through retirement, Republicans said they expect, on average, to need $21 million.

Even with such ambitious savings goals, almost two-thirds of polled Democrats, Republicans, and Independents say they have less than $150,000 saved for retirement.

Republicans and Democrats who participated in the survey reported having no emergency savings at 25% and 29%, respectively.

While the average Republican anticipates retiring at age 63, the average Democrat and independent anticipate retiring at age 64.

In response to a USA TODAY request, BlackRock representatives sent over a comprehensive analysis of survey results by party affiliation. Democrats made up 45% of the respondents, followed by Republicans (42%), and independents (13%).

Despite political differences, concerns about retirement remain prevalent.

Even in politically contentious times, retirement experts assert that concerns about retirement security are universal and cross party lines.

“Getting older and making plans for a stable retirement are issues that affect and present opportunities for all.”. The CEO of the impartial Transamerica Center for Retirement Studies, Catherine Collinson, stated, “We’re all in this together.”.

Additionally, Collinson noted, “a long history of collaboration on both sides of the aisle” has benefited retirement security legislation. She brought up Secure Act 2.0 of 2022, which received support from both parties. With the intention of increasing retirement security, that legislation revised numerous retirement savings guidelines.

Two significant conundrums that face Americans who are in or nearing retirement are further highlighted by the BlackRock survey.

The first is a massive discrepancy between Americans’ retirement savings and their anticipated needs.

The discrepancy between Americans’ anticipated and actual dates of retirement is the second issue. Two significant retirement surveys show that the average American retires at age 62. Nevertheless, the typical worker over 50 anticipates retiring around the age of 67.

Trump and Harris have very different ideas for Social Security.

Regarding Social Security, which is expected to run out of money in about ten years, Vice President Kamala Harris and Former President Donald Trump have very different positions.

Harris promises to “make millionaires and billionaires pay their fair share of taxes in order to strengthen Social Security and Medicare for the long run.”. “.

She would most likely follow President Joe Biden’s example, who has pledged to increase tax rates on wealthy individuals and corporations and pursue wealthy tax evaders in order to generate additional revenue.

According to a Bankrate analysis, the personal finance website, Harris might also be hinting at the possibility of raising the Social Security payroll tax to higher incomes. Social Security taxes are not withheld from workers’ earnings over $168,600 in 2024.

According to Bankrate, Trump has “taken a more ambiguous stance” on Social Security, promising to preserve the benefits without providing specifics. Trump has argued that expanding the economy and creating jobs will automatically increase payroll tax receipts, strengthening Social Security.

A commitment to “fight for and protect Social Security and Medicare with no cuts, including no changes to the retirement age,” is found in the Republican Party’s 2024 platform. The American retirement age should be raised to 70, as Trump has previously advocated.

Older voters pay attention when candidates discuss Social Security.

Election-year surveys consistently indicate that older voters are following the candidates’ statements regarding Social Security.

Voters over 50 in battleground states are more likely to support candidates who “commit to protecting Social Security,” among other issues, according to AARP polls conducted this summer.

According to AARP senior vice president John Hishta, “what they’re looking for is an acknowledgement” from the candidates that “they’re going to do what they can do to preserve Social Security for future generations.”. “That is one unifying issue that cuts across party lines. “.

According to Transamerica’s annual retirement survey, middle-class Americans’ top five retirement concerns for 2024 include the potential threat to Social Security.

“According to our research, tens of millions of Americans could find themselves unable to afford a safe retirement,” stated Collinson. Furthermore, Social Security is the No. People’s top concern is this. “.

The president and Congress should address the funding gaps in Social Security, lower the cost of health care and prescription drugs, and guarantee that all workers can save for retirement while still employed, according to Transamerica research. These are the top priorities listed by middle-class Americans for these issues.

More: Can you imagine if all American workers were automatically enrolled in retirement accounts?

Many common concerns among wealthy Americans are related to retirement. Transamerica discovered in a 2023 study that retirement security increases with income, but only to a certain extent. Only 42% of Americans, according to the survey, stated they are “very confident” they can maintain a comfortable lifestyle in retirement, even among those whose household income exceeds $200,000.

scroll to top