A recent poll by a global investment company has highlighted a surprising consensus between Republicans and Democrats: the U.S. is in the midst of a retirement savings dilemma.

Currently, only about 50% of American households have funds set aside for retirement. Furthermore, the Social Security system is projected to face financial challenges in the near future, and its benefits were never intended to fully cover retirement expenses.

In an August survey, BlackRock posed questions about retirement security to 1,000 registered voters. The findings reflected agreement across party lines.

When asked about the existence of a retirement savings crisis, 93% of Republicans said yes, along with 86% of Democrats and 94% of independents.

Additionally, 75% of Republicans expressed concern about their ability to sustain their quality of life in retirement, a sentiment echoed by 75% of Democrats and a slightly lower percentage of independents.

Shared Concerns About Retirement Security

The survey revealed widespread bipartisan consensus on further retirement security metrics:

• On average, Republicans projected needing around $2.1 million for retirement, while Democrats estimated about $2 million, and independents about $3 million.
• Despite these ambitious savings goals, approximately two-thirds of all groups reported having less than $150,000 saved for retirement.
• One in four respondents from both parties indicated they lack any emergency savings, a figure that is 29% among independents.
• The average expected retirement age is 64 for Democrats and independents, while Republicans expect to retire at 63.

BlackRock shared further details about the survey stats based on party affiliation in response to a request from YSL News, indicating that 45% of respondents were Democrats, 42% were Republicans, and 13% were independents.

Widespread Retirement Concerns Amid Political Tensions

Experts agree that retirement security is a crucial issue that resonates with all Americans, regardless of political affiliation, even during divisive times.

“Preparing for a financially stable retirement is a universal issue, and all of us face this challenge together,” commented Catherine Collinson, CEO of the nonpartisan Transamerica Center for Retirement Studies.

Collinson noted that there has been a notable history of bipartisan cooperation on retirement-related legislation. For instance, the Secure Act 2.0 was introduced in 2022 and garnered support from both parties aimed at enhancing retirement security.

The findings from the BlackRock survey highlight two major challenges for Americans nearing retirement:

First, there is a significant disparity between how much individuals save and what they believe they will need.

Secondly, there is a disconnect between the anticipated retirement age and the actual age at which individuals retire. Currently, the average retirement age sits at 62, but workers over 50 anticipate retiring closer to 67.

Differing Views on Social Security from Harris and Trump

Donald Trump and Kamala Harris present contrasting approaches regarding Social Security, a fund expected to face a shortage in roughly ten years.

Harris has committed to “strengthening Social Security and Medicare long-term by ensuring that millionaires and billionaires contribute their fair share in taxes.”

It seems that Vice President Kamala Harris may align with President Joe Biden’s approach, who has pledged to increase revenue by targeting wealthy individuals who evade taxes, alongside raising tax rates for high-income earners and corporations.

According to analysis from Bankrate, a personal finance website, Harris might also hint at expanding the Social Security payroll tax to encompass higher incomes. Currently, workers are exempt from paying Social Security taxes on earnings exceeding $168,600 in 2024.

Former President Donald Trump has adopted a less defined position on Social Security, as reported by Bankrate. He has promised to safeguard benefits but hasn’t clarified his strategy. Trump argues that increasing economic growth and job opportunities would naturally enhance payroll tax revenues, thereby supporting Social Security.

The 2024 Republican Party platform asserts a commitment to “preserve and defend Social Security and Medicare without cuts, including altering the retirement age.” However, Trump has previously indicated support for increasing the retirement age in the U.S. to 70.

Older Voters Pay Attention to Social Security Discussions

Surveys conducted during election years indicate that older voters are notably attentive to candidates’ remarks regarding Social Security.

A recent series of polls by AARP revealed that voters over 50 in competitive states tend to favor candidates who express a commitment to safeguarding Social Security, among other priorities.

John Hishta, senior vice president at AARP, stated, “What they’re seeking is recognition from the candidates that they will strive to maintain Social Security for future generations. It’s a unifying topic that crosses party lines.”

Transamerica’s annual retirement survey indicates that concerns about the future of Social Security rank among the top five retirement anxieties faced by middle-class Americans in 2024.

“Our findings show that millions of Americans—tens of millions—face the risk of not achieving financial security in retirement,” noted Collinson. “Social Security remains the foremost concern for many.”

The research from Transamerica indicates that key priorities for middle-class Americans regarding the actions of the president and Congress include addressing Social Security funding concerns, making healthcare and prescription medications more affordable, and ensuring that all workers have the means to save for retirement through employment.

Wealthy Americans also share common worries regarding retirement. A 2023 report by Transamerica highlighted that while retirement security increases with income, this trend plateaus at a certain point. The report revealed that even among households earning over $200,000, only 42% expressed being “very confident” about maintaining a comfortable lifestyle in retirement.

“The prospect of retiring and using your savings, combined with the fear of depleting your funds, is daunting—even for individuals with significant wealth,” remarked Peter Lazaroff, a certified financial planner based in St. Louis. “This concern transcends political affiliations.”