Estimated read time: 2-3 minutes
- A recent Bankrate report reveals that as many as 57% of Americans fear they will not retire comfortably due to financial pressures, such as inflation and high interest rates.
- Generational differences are clear, with Gen X and baby boomers feeling more behind on savings than Gen Z and millennials.
- Mark Hamrick, a senior economic analyst at Bankrate, notes a continuing divide between those confident in retirement and those not, emphasizing the risks of insufficient retirement planning.
SALT LAKE CITY — For many Americans, the work they put into their jobs is motivated by a goal to retire comfortably. But with the economy as it is, many fear they're behind on retirement savings.
As many as 57% of Americans fear they will not retire comfortably due to financial stresses such as inflation, high interest rates or struggling to find success in the job market, according to a recent report by Bankrate. However, younger generations seemed more secure in their financial savings plans than older generations.
Rates at which each generation feels behind on retirement savings:
- Gen Z: 40%.
- Millennials: 53%.
- Gen X: 68%.
- Baby boomers: 66%/
"Given the sharp divide among those who express confidence, or lack of it, that they'll be able to retire comfortably, we see a continuing pattern in our country of the 'haves' and the 'have nots,'" Mark Hamrick, a senior economic analyst at Bankrate, said in the report.
"Those who only live for today are putting themselves at risk for a poor tomorrow, or in this case an underfunded retirement. For those still many years away from traditional retirement age, the benefit of compounded investment returns can truly pay a significant dividend," he added.
Saving for homeownership
Twenty-three percent of Americans reported having no savings, while another 17% indicated they have less than $500 set aside, according to a recent report by GOBankingRates. Many people still have years to go before retirement, and while saving for that milestone is wise, many are struggling to save up enough for the home they wish to retire in someday.
To understand just how much home costs have changed over the years, GOBankingRates calculated the savings required to purchase a home in 1970, when many boomers bought their first properties, and compared it to the amount needed in 2024:
"Nationwide, the savings needed for a 20% down payment has increased by around $45,000 for homeowners, when adjusted for inflation. In 1970, homeowners needed $3,400 for a 20% down payment on the average home, compared to $71,688 in 2024. Without adjusting for inflation, this is an increase of more than $68,000."
Home value change in Utah from 1970 to 2024:
- Home value in 2024: $526,498.
- Savings required for a 20% down payment in 2024: $105,300.
- Increase in down payment needed from 1970 to 2024: $78,179.
Although Utah is ranked sixth overall for the cost of buying a home, GoBankingRates told the Deseret News through its analysis it found that Utah had the fourth-largest cost increase of any state.
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Emma Pitts
