Workers Are Saving for Retirement Despite Challenges Amid the Pandemic
PR Newswire
LOS ANGELES, Aug. 5, 2021
LOS ANGELES, Aug. 5, 2021 /PRNewswire/ -- Despite six in 10 employed workers (60 percent) having made adjustments due to pandemic-related financial strain, 82 percent are saving for retirement, according to Living in the COVID-19 Pandemic: The Health, Finances, and Retirement Prospects of Four Generations, released today by nonprofit Transamerica Center for Retirement Studies® (TCRS) in collaboration with Transamerica Institute®.
As part of TCRS' 21st Annual Retirement Survey of Workers, one of the largest and longest-running surveys of its kind, the new study examines the retirement outlook of Generation Z, Millennials, Generation X, and Baby Boomers. It is based on a survey of employed workers conducted in late 2020 and contains recommendations for workers, employers, and policymakers to improve retirement security.
"Workers are weathering a public health crisis and contending with fears about the virus and vaccinations, concerns for family and friends, employment impacts, and financial setbacks," said Catherine Collinson, CEO and president of Transamerica Institute and TCRS.
The survey findings illustrate the experiences of workers across generations that can impact their health, financial well-being, and ability to save and invest for retirement:
Workers Are Saving for Retirement, but Few Are "Very" Confident About Their Long-Term Prospects
"Given the magnitude of challenges workers have faced during the pandemic, it is truly remarkable that they have maintained focus on their future retirement. However, before the pandemic and today, many workers continue to be at risk of not achieving a financially secure retirement," said Collinson.
The survey findings illustrate the retirement outlook of workers across generations:
How to Improve the Retirement Security of Workers
"The pandemic has exposed weaknesses and revealed opportunities for improving retirement security. The insights gained can be applied toward effecting positive change. A concerted effort is needed among workers, employers, and policymakers," said Collinson. Each of these stakeholders could take additional steps, including:
"Workers' ability to achieve a secure retirement ultimately depends on access to meaningful employment throughout their lives, the availability of retirement, and health and welfare benefits, and the preservation of safety nets such as Social Security and Medicare," Collinson said. "As we emerge from the pandemic, we have an unprecedented opportunity to strengthen the fabric of our retirement system — including how we live, work, retire, and age with dignity."
Living in the COVID-19 Pandemic: The Health, Finances, and Retirement Prospects of Four Generations provides detailed survey findings and comparisons by generation. Visit TCRS at www.transamericacenter.org to download the report and other research. Follow on Twitter @TCRStudies to stay up to date with TCRS' latest research.
About Transamerica Center for Retirement Studies
Transamerica Center for Retirement Studies® (TCRS) is a division of Transamerica Institute®, a nonprofit, private foundation. Transamerica Institute is funded by contributions from Transamerica Life Insurance Company and its affiliates and may receive funds from unaffiliated third parties. TCRS and its representatives cannot give ERISA, tax, investment, or legal advice. This material is provided for informational purposes only and should not be construed as ERISA, tax, investment, or legal advice. For more information, visit www.transamericacenter.org and follow TCRS on Twitter at @TCRStudies.
About the 21st Annual Transamerica Retirement Survey of Workers
The analysis contained in Living in the COVID-19 Pandemic: The Health, Finances, and Retirement Prospects of Four Generations was prepared internally by the research team at Transamerica Institute (TI) and TCRS. The 25-minute online survey was conducted within the U.S. by The Harris Poll on behalf of TI and TCRS between November 17 and December 29, 2020 among a nationally representative sample of more than 10,000 adults. The data in this report is shown for a subsample of 3,109 workers in for-profit companies of one or more employees, comprising 301 Generation Z (born 1997 to 2012), 1,249 Millennials (born 1981 to 1996), 960 Generation X (born 1965 to 1980), 573 Baby Boomers (born 1946 to 1964), and 26 workers who were born prior to 1946. Results were weighted where necessary to bring them into line with the population of U.S. residents, referencing Census data for education, age by gender, race/ethnicity, region, household income, education, employment, marital status, and size of household. Weighting also adjusts for attitudinal and behavioral differences between those who are online versus those who are not, those who join online panels versus those who do not, and those who respond to surveys versus those who do not.
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SOURCE Transamerica Center for Retirement Studies