Texas voters think there is a ‘retirement crisis’ and their post-work accounts are underfunded, according to new study from asset management giant BlackRock, even though the issue hasn’t drawn the same attention in national and state elections as other hot-button issues.
The study is part of what company founder and CEO Larry Fink called “rethinking retirement” in his 2024 annual chairman’s letter to investors. In his letter, Fink wrote that the retirement crisis requires a substantial response from the U.S. government.
“America needs an organized, high-level effort to ensure that future generations can live out their final years with dignity,” he wrote.
The new study, which surveyed 500 registered voters in Texas, seems to point toward Texan voters being in broad agreement with Fink. One of the most eye-catching figures: 91% of Texas voters think there is a retirement savings crisis in America.
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The survey results come two months ahead of a pivotal national election where the economy and inflation are expected to be key issues among voters, but social security and retirement savings policies have been overshadowed by abortion, immigration, foreign policy and tax priorities.
Texans are slightly more concerned about a retirement crisis than the country as a whole, of which 90% said there is such an issue.
Once you take that into account, the rest of the figures in the study are no surprise. More than 70% of registered Texas voters are concerned about having enough in savings or investments to fund their needs in retirement. A similar percentage are concerned about maintaining their standard of living or being able to afford long-term costs like nursing homes once they retire.
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Nationally, voters estimate it will take about $2.2 million to retire, but 62 % of registered voters in Texas surveyed report they have less than $150,000 in retirement savings.
All told, less than a quarter (24%) of registered Texas voters expressed a high level of confidence that they have enough to live throughout their retirement years. That’s a lower percentage than the 32% who reported they have no retirement savings at all.
That 32% with no retirement savings is skewed toward young people and minorities. According to the survey, 52% of registered Texas voters aged 18-34 and 46% of Black voters reported having no money saved for retirement.
That number is also high (41%) amongst women between the ages of 18 and 54. Lower earnings and longer life expectancy on average, as well as career pauses, often for family reasons, are three of the top factors for less savings among women.
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ProPublica: Irving-based auto lender Exeter deferred loans and drove up borrowing costs
Exeter is one of the largest auto lenders in the nation, specializing in high-interest loans to people with histories of not paying bills or defaulting on debt, a practice known as subprime lending. The company, which has more than 500,000 active loans and a partnership agreement with CarMax, the country’s largest used car retailer, casts itself as a provider of second chances. “We’re here to help,” it says on its website. In reality, Exeter’s practices often do the opposite. When the company allows a borrower to skip payments, it typically adds thousands of dollars in new interest charges to the customer’s debt. Dozens of customers told ProPublica that Exeter didn’t tell them about the added costs. When it’s time to make their final payment, many are faced with a huge bill, which they often can’t afford to pay.
