Amid reports that over half of Americans are behind on retirement savings (55%), with 50% of workers not having an available retirement plan, it is clear that in an era marked by economic volatility and societal transformations – the landscape of retirement planning in America is undergoing a notable evolution.
With this in mind, the finance and investment experts at FOREX.com commissioned us to delve deeper into the retirement pot attitudes across the United States.
To do so, the experts conducted a comprehensive study of 3,000 Americans to ultimately uncover how much each state has on average in their investment pot, what sources Americans are relying on for their retirement savings, and how comfortable they currently feel with their current financial pot.
Data gathered on behalf of FOREX.com can reveal that over half of Americans have not started saving for retirement yet (55.70%), with 1 in every 6 also revealing that they have less than $10,000 in their savings accounts (15.8%%).
This is despite the fact that a third (33%) of them believe they need between $100,001—$500,000 to achieve a sense of financial security when they retire, and over a quarter (26.10%) believe they need between $500,001 and $1,000,000.
When it comes to state-by-state analysis – those in Montana are most prepared for their retirement, with over a fifth of those surveyed currently sitting on $100,001 – $500,000 in retirement savings. This is closely followed by West Virginia, with 14.8% of respondents sitting on the same value.
Over two-thirds of Americans are not at all satisfied with their current retirement savings pot
The research can further reveal that over two-thirds of Americans are not at all satisfied with the current size of their retirement savings pot (68.80%), with a further 15.5% reportedly feeling slightly satisfied.
In comparison, less than 1 in every 100 (0.80%) report feeling very satisfied with their retirement savings, suggesting the majority of Americans do not feel financially prepared for retirement.
When it comes to state-by-state analysis – West Virginians are currently feeling the most satisfied with their retirement savings, with 12.5% of respondents saying so. However, on the other end of the spectrum, those surveyed in Alaska, Idaho and Wyoming all admitted to feeling not at all satisfied with their current retirement savings.
Real estate and stock market investments are emerging as the most popular sources of retirement savings
Interestingly, over a third (35%) of Americans are choosing to rely on real estate investments (18%) or stock investments (17%) as their source for retirement savings. In a world where financial landscapes evolve, the combination of real estate and stock market investments may stand out as a formidable strategy for building and safeguarding wealth.
With 30% of Americans surveyed feeling somewhat uncertain in their confidence in managing the risks associated with retirement savings, exploring both avenues offers a compelling path toward financial security and prosperity.
Weller said, “One of the primary advantages of incorporating trading and investing into retirement planning is the potential for higher returns compared to conventional methods. While traditional savings accounts and fixed-income instruments provide stability, they often fall short in generating the substantial growth needed to outpace inflation.
“Furthermore, trading and investing allows individuals to diversify their retirement portfolios beyond traditional asset classes. In addition to equities and bonds, exposure to currencies, commodities and other alternative investments can enhance portfolio resilience and reduce risk.”