Despite the prospect of not having enough money to live on later in life, many Americans are unwilling to cut spending on indulgences now in order to invest for retirement.
Fifty-five percent of respondents to Bank of America’s Merrill Edge Report say they’re frightened they won’t have enough money throughout retirement, but many won’t consider cutting back on entertainment (33%), eating out (30%) and vacations (28%).
Even if they were to receive a hypothetical million-dollar windfall, only 19% say they would make it a priority to set aside the “found money” for their retirement years.
Respondents also say having enough money to live “in the here and now” is a more popular priority (63%) than saving more for the future (48%). And more than one-third of women report that unexpected costs have gotten in the way of their retirement savings, compared with 28% of men.
More women than men (59% versus 51%) are frightened about the possibility of not having enough money when they retire. The fear of an uncertain retirement is also most common among 61% of generation Xers and 61% of baby boomers. Only 41% of millennials feel this way.
The survey also indicates that the status of a romantic relationship can fuel financial concerns. For example, 68% of divorced survey participants say they are worried about not having enough money during retirement, compared with 53% of respondents who are single, married or widowed.
Related articles: