A recent new survey by a global investment firm uncovers a rare area where Republicans and Democrats appear to agree: America is facing a retirement savings crisis.
Only about half of American households have retirement savings accounts, and Social Security may soon be underfunded, but its benefits were never intended to cover all retirement costs.
In an August survey, BlackRock asked 1,000 registered voters about their views on retirement security in America, and the responses cut across party lines.
When the survey asked voters whether they believed there was a retirement savings crisis in the country, 93% of Republicans said “yes,” as did 86% of Democrats and 94% of independents.
Three-quarters of Republicans said they were concerned about “not being able to maintain their standard of living” in retirement, along with three-quarters of Democrats and slightly smaller shares of independents.
Republicans and Democrats are united on the issue of retirement security
The survey also found broad bipartisan agreement on several other measures of retirement security.
Republicans expect to need an average of $2.1 million saved to get by in retirement, compared with $2 million for Democrats and $3 million for Independents. Despite these lofty savings goals, roughly two-thirds of Democrats, Republicans and Independents surveyed report having $150,000 or less saved for retirement. A quarter of Democrats and Republicans surveyed say they have no emergency savings, as do 29 percent of Independents. The average retirement age for Democrats and Independents is 64, while the average retirement age for Republicans is 63.
BlackRock officials provided a detailed breakdown of survey responses by party affiliation to USA Today at its request, saying 45% of respondents were Democrats, 42% were Republicans and 13% were independents.
Even in turbulent times, retirement fears cut across party lines
Security after retirement is a universal concern that cuts across party lines, even in politically volatile times, retirement experts say.
“Retirement, preparing for a financially secure retirement, is everyone’s issue and everyone’s opportunity. We’re all in this together,” said Catherine Collinson, CEO of the nonpartisan Transamerica Center for Retirement Research.
Collinson said retirement security bills have also enjoyed a “long history of bipartisan cooperation.” He pointed to the bipartisan SECURE Act 2.0 of 2022, which rewrote many of the rules for retirement savings with the goal of boosting retirement security.
The BlackRock survey provides new evidence about two major challenges facing retired or near-retirement Americans.
First, there’s a huge gap between how much Americans are saving for retirement and how much they think they’ll need.
The second problem is the gap between when Americans plan to retire and when they actually do: According to two major retirement surveys, the average American retires at age 62. But the average worker age 50 and older expects to retire closer to age 67.
Harris and Trump have very different plans for Social Security
Former President Donald Trump and Vice President Kamala Harris have sharply different policies for Social Security, which is projected to be underfunded within about a decade.
Harris promises to “strengthen Social Security and Medicare in the long term by making millionaires and billionaires pay their fair share of taxes.”
She will likely follow the lead of President Joe Biden, who has vowed to go after wealthy tax evaders and raise new revenue by raising taxes on wealthy individuals and corporations.
According to an analysis by personal finance site Bankrate, Harris may also be referring to the idea of expanding Social Security payroll taxes to higher-income earners: In 2024, workers would pay no Social Security tax on earnings above $168,600.
Bankrate reports that Trump has “taken a more vague stance” on Social Security, promising to protect Social Security benefits but not specifying how. Trump argues that economic growth and job creation will naturally increase payroll tax revenues, strengthening Social Security.
The Republican 2024 platform includes a pledge to “not cut Social Security and Medicare, not change the retirement age, and fight to protect them.” Trump has previously supported raising the U.S. retirement age to 70.
When candidates talk about Social Security, older voters listen
Election-year surveys consistently suggest that older voters pay close attention to what candidates say about Social Security.
In a series of polls this summer, AARP found that voters over 50 in battleground states are especially likely to vote for candidates who “promise to protect Social Security.”
“What they want is recognition that candidates are going to do what they can to protect Social Security for future generations,” said John Hishta, senior vice president of AARP. “This is a cross-party issue.”
Threats to Social Security rank among the top five retirement worries for middle-class Americans in 2024, according to Transamerica’s annual retirement survey.
“Our research shows that millions, tens of millions, of Americans are at risk of not having enough money to retire comfortably,” Collinson said, “and Social Security is at the top of people’s minds.”
According to a Transamerica survey, the top priorities middle-class Americans give to the President and Congress are defunding Social Security, making health care and prescription drugs more affordable, and ensuring all workers can save for retirement while they’re still working.
Plus: What would happen if every American worker was automatically enrolled in retirement savings?
Wealthy Americans share many of the same fears about retirement. Transamerica found in a 2023 report that retirement security increases with income, but there are limits. Even among Americans with household incomes over $200,000, only 42% are “very confident” they can maintain a comfortable lifestyle in retirement, according to the report.
“Even if you’re objectively wealthy, the thought of retiring and starting to spend your assets and the fear of running out of money is terrifying,” says Peter Lazaroff, a certified financial planner in St. Louis. “It has nothing to do with politics.”
