A growing number of Texans fear their golden years could turn to lead, with many feeling financially unprepared as retirement draws closer, BlackRock reported on Monday.
In a new survey, the world's largest asset manager found retirement security fears "consume" many in the Lone Star State. Out of about 500 respondents surveyed, BlackRock found that 78% are concerned that the system is leaving too many Americans without sufficient savings to live in old age.
Advertisement
About 62% of Texans reported having more than $150,000 in retirement savings, BlackRock said.
Advertisement
Meanwhile, a slim 22% of employed Texans felt "very confident" in having enough money to last through retirement, the data showed, while nearly half are more concerned about going broke during their golden years than they are dying.
Business Briefing
Become a business insider with the latest news.
SIGN UP
Or with:
GoogleFacebook
By signing up you agree to our Terms of Service and Privacy Policy
BlackRock's findings are consistent with a body of evidence showing widespread retirement insecurity, especially with the solvency of Social Security a big question mark as more depart the workforce. Costlier living expenses driven by inflation have exacerbated the problems.
In a 2021 report, the Federal Reserve Bank of Dallas found that Texas "has a high share of population groups that tend to struggle with retirement savings," including low-wage workers, people of color (specifically Hispanics), and rural residents.
Advertisement
The data suggests that Americans in general -- and Texans in particular -- "are not as prepared as they need to be for retirement," the Dallas Fed's researchers wrote.
For those over 45, available figures show that average retirement account balances lag far behind levels considered comfortable enough to retire. BlackRock's survey respondents felt $2.1 million was the magic number they'd need to live comfortably after retiring; however, not even 30% have personally stocked away enough to do so.
The problem is growing more acute, as more Baby Boomers retire and the first wave of Generation X turns 60 in 2025 -- with retirement not far off. According to Fidelity data, Baby Boomers are considered the most financially secure, with the average 401K balance at $249,000, with the average individual retirement account carrying a balance of about $257,000.
Advertisement
But for Gen X, reality is starting to bite. The average 401K for that cohort is just over $192,000, according to Fidelity, with the average IRA barely over $100,000.
Advertisement
BlackRock found that among the Texans they surveyed, Gen Xers were indeed the most anxious, with 60% having under $150K in retirement savings. Half of voters in Texas between the ages of 55 and 64 have under $50,000 saved for retirement, the firm noted.