Since the 2024 election, Americans have shown a renewed sense of optimism about retirement, but generational differences are becoming more pronounced. According to PensionBee’s December 2024 Retirement Confidence Index, 60% of older workers (59+) feel positive about their retirement plans, a significant 15% increase since before the election. Younger workers (under 59) are also more optimistic, with 46% feeling confident, a 7% boost since October.
However, alongside this positivity, younger Americans are increasingly uncertain about their financial futures. 30% now feel doubtful about their retirement plans, up from 25% pre-election, while only 21% of older Americans share this concern. This growing divide suggests that older workers may feel more secure in their financial standing, while younger workers face anxiety over issues like Social Security’s long-term stability and economic uncertainty.
The role of Social Security is central to this dynamic, reflecting the differing financial outlooks across generations. Among older Americans, 43% now view Social Security as a vital source of retirement income, a 5% increase since a pre-election survey. Younger workers are less certain, but 21% now see it as important, marking a 4% rise. Confidence in personal contributions is also growing. 39% of younger workers and 36% of older workers feel their retirement savings are on track, thanks to higher contributions and improved market conditions. These trends reflect a positive shift in financial preparedness, as more individuals take control of their retirement plans.
Yet, rising costs are casting a shadow over these gains, particularly healthcare expenses. 39% of older workers and 26% of younger workers report concerns about affordability, both up significantly from previous surveys. These pressures highlight the need for careful financial planning to address the escalating costs that threaten retirement security.
