Even the Wealthy Think it Will Take a ‘Miracle’ to Retire

December 6, 2021

A recent survey found that two out of five American investors said it will “take a miracle” for them to enjoy financial security in retirement. 

The survey, part of the 2021 Natixis Global Retirement Index, found that young investors are more likely to be pessimistic about their chances of retiring, with 46% of millennials and 45% of Gen X feeling that way, compared to 30% of baby boomers.

What is striking is not the level of pessimism, but that the respondents feel this way, despite seemingly making all the right financial moves. The firm only surveyed people who have at least $100,000 in investable assets, and the respondents had a median net worth of $450,000 and saved on average more than 16% of their salary. Among respondents with a net worth above $1 million, half said they would likely need to work longer than anticipated.

Among the respondents’ biggest worries were inflation, low interest rates, and mounting public debt, as well as a general sense of uncertainty about the future. Nearly half said they worry they won’t be able to stay employed as long as they like, and 7 out of 10 worry that healthcare and long-term care costs will severely impact their financial security.

The survey was part of an annual study that ranks 44 developed nations according to how their economic environment and government policies drive retirement security. Iceland took the top spot, with the U.S. coming in at number 17, down one spot from 2020.

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