A national survey finds that Millennials and Generation X are more worried about retirement as compared to older generations. 64% of Millennials and 54% of Generation X are more concerned about their retirement security in the wake of the COVID-19 pandemic. The level of concern is at 42% for Baby Boomers and 25% for the Silent Generation.
“Generation X and Millennials are the first two generations that largely will enter retirement without a pension, so it’s not surprising that their anxiety is higher,” said Dan Doonan, National Institute on Retirement Security (NIRS) executive director.
“Millennials and Gen X have lived through multiple economic downturns and decades of stagnant wages. Couple that with longer life spans and rising health and long-term care costs, and it’s easy to understand their pessimism. Going forward, it will be critical for policymakers to find ways to strengthen our retirement infrastructure so these generations can be self-sufficient in their older years,” Doonan said.
The research finds strong support for pensions and Social Security, both of which provide stable and predictable income that lasts through retirement. Most Americans across generational lines see the value of increasing contributions to Social Security, and the highest support for expanding Social Security is among Millennials (61%).
Similarly, pensions are viewed favorably by all generations, with Millennials expressing the highest favorability (81%). There is broad agreement that all U.S. workers should have access to a pension to ensure financial independence in retirement.
This research also finds:
- Across generations, most of those who are concerned about the impacts of the pandemic plan to delay their retirement.
- There is generational agreement that the U.S. faces a retirement crisis, with Millennials and Generation X most pessimistic about retirement.
- There is broad support across generations for Social Security, including support for increasing contributions and expanding benefits.
- All generations have favorable views of defined benefit pensions, along with a wide agreement that pensions are better than 401(k) plans for providing retirement security.
Edited by Maryssa Gordon, Senior Editor, Price of Business Digital Network