Retirement Security 2015: Roadmap for Policy Makers - Americans’ Views of the Retirement Crisis

36 Pages Posted: 5 Jun 2016

See all articles by Diane Oakley

Diane Oakley

National Institute on Retirement Security

Kelly Kenneally

Independent

Date Written: March 1, 2015

Abstract

A new nationwide public opinion research report finds that an overwhelming majority of Americans – 86 percent – believe the nation faces a retirement crisis.

These findings are contained in a new research report, Retirement Security 2015: Roadmap for Policy Makers Americans’ Views of the Retirement Crisis.

More specifically, the research finds that:

1. An overwhelming majority of Americans believe there is a retirement crisis. Some 86 percent agree that the nation faces a retirement crisis, and 57 percent strongly agree there is a crisis.

2. Three in four Americans remain highly anxious about their retirement outlook, but the concern has dissipated slightly as the economy has recovered. Some 74 percent of Americans percent say they are concerned, down from 85 percent as reported in the 2013 study.

3. Even though Americans feel slightly less stressed about their retirement prospects, support for steady and reliable retirement income from a pension is high and growing. In fact, 82 percent say a pension is worth having because it provides steady income that won’t run out, while 67 percent of Americans indicate they would be willing to take less in pay increases in exchange for guaranteed income in retirement.

4. Americans continue to feel that leaders in Washington do not understand their struggle to save for retirement, and they strongly support efforts by states to set up retirement plans for those workers without access to an employer sponsored plan. Some 87 percent of Americans say Washington policymakers do not understand how hard it is to prepare for retirement, while 84 percent say Washington needs to do more to help ensure retirement security.

5. Americans see retirement benefits as a job feature that is almost as important as salary. Salary is viewed as important by 75 percent of American, and retirement benefits are close behind at 72 percent.

6. Americans express strong support for pensions for public employees. Few Americans realize that 75 percent of public pension costs are paid for with employee contributions and investment returns. Some 87 percent of Americans say pensions are a good way to recruit and retain qualified teachers, police officers and firefighter. But, only one-fourth of Americans understood that public employers pay for 25 percent or less of public pension costs. More than eight out of ten — a vast majority of Americans — say that all employees, not just the public sector, should have a pension. Some 87 percent of Americans say pensions are a good way to recruit and retain qualified teachers, police officers and firefighters.

7. Protecting Social Security benefits is increasingly important. Some 73 percent of Americans say it’s a mistake to cut government spending in such a way as to reduce Social Security benefits for current retirees, up from 67 percent in 2013. When it comes to benefits for future generations, 69 percent oppose cutting government spending that reduces Social Security benefits. Americans are divided when it comes to increasing the amount of Social Security benefits by delaying the withdrawal of benefits at an older age: 42 percent agree with a delay while 52 percent disagree.

This biennial nationwide public opinion research is the fourth poll that measures how Americans feel about their financial security in retirement and assesses their views on policies that could improve their retirement outlook. It is intended to serve as a tool for policymakers, thought leaders and retirement service providers as they work to stem the retirement crisis and re-fortify the U.S. retirement infrastructure.

The polling was conducted by Greenwald & Associates as a nationwide telephone interview of 801 Americans age 25 or older. The data was balanced to reflect U.S. demographics for age, gender, and income. The margin of error is plus or minus 3.5 percent.

Keywords: pension, retirement, savings, 401(k), social security, opinions, survey

JEL Classification: E24, G23, I31, J11, J14, J33, J68

Suggested Citation

Oakley, Diane and Kenneally, Kelly, Retirement Security 2015: Roadmap for Policy Makers - Americans’ Views of the Retirement Crisis (March 1, 2015). Available at SSRN: https://ssrn.com/abstract=2785705 or http://dx.doi.org/10.2139/ssrn.2785705

Diane Oakley (Contact Author)

National Institute on Retirement Security ( email )

1612 K Street NW
Ste. 500
Washington, DC 20006
United States

Kelly Kenneally

Independent ( email )

No Address Available

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