This is from a survey of only 240 people from WalletHub August 2026, but still, the results are not optimistic.
For example, 43% of those surveyed believe it is not realistic for the average American to expect to retire comfortably. “Not realistic?” How do HD readers feel about that?
- Pension preference: 7 in 10 people believe a pension is better than a 401(k). Understandable, but for most workers this is not practical because you need to be a participant in a pension plan (generally one employer) for decades to generate a significant retirement income and the average tenure with one employer is only 4-6 years +-
- Americans worry about retirement: More than 1 in 3 Americans are not confident that they will have enough money to retire.
- Benefit trade-off: More than half of Americans say they would prefer to pay a 12.4% Social Security tax to get double the benefits rather than a 6.2% tax and current benefits. The thing is, that won’t work. Even doubling the entire current 12.4% rate (to 24.8%) would still leave a large gap relative to doubling costs.
- Retirement doubt: 43% of people believe it is not realistic for the average American to expect to retire comfortably. I guess the key word is comfortably and how defined.
- Many people may never retire: 40% of people say they expect to work until they die.
- Debt takes precedence: More than 2 in 5 Americans think paying off debt is more important than making retirement contributions. I wonder.
Note: Percentages may not total 100% due to rounding.
Well, don’t be average. That’s why we have Humble Dollar – to show us the way.
To me, it is only bleak, if you do not prepare. You make choices, and most people live for today, not when they are 65 to 90 years old in retirement. That may work for some, but for most not so much.
Dick: Given that 55-65% of Americans describe themselves as living paycheck to paycheck, the 43% estimate of retirement security may be low. Traditional pensions are almost extinct and 401K plans only help if you have sufficient means to contribute. Thus, in order to save for retirement, you have to have disposable income: income beyond what it costs you to live that can be saved and invested for the future. If, in fact, a large majority of Americans are living paycheck to paycheck, it should hardly be surprising that so many do not expect to retire comfortably – or retire at all.
One of my sons and his wife view themselves as living paycheck tp paycheck but they do contribute enough to their retirement plan each month to get their employers match. I have no idea if they are saving enough to have a comfortable retirement. However, my point is simply that we shouldn’t assume that everyone who says they are living paycheck to paycheck isn’t also putting money into a retirement plan.