A majority of workers across generations — 68% — said they believe they could work until retirement and still not have enough money saved to meet their needs, according to a June 18 report from the Transamerica Center for Retirement Studies and Transamerica Institute.
In a survey of more than 5,000 U.S. workers, 80% said their generation will have a harder time achieving financial security than their parent’s generation.
“The single most important ingredient for workers to achieve a financially secure retirement is access to meaningful employment with retirement benefits throughout their working years,” said Catherine Collison, CEO and president of the Transamerica Institute and TCRS. “Amid workforce transformations and the evolving retirement landscape, resilience is imperative. Workers must have the know-how and resources needed to navigate an uncertain future.”
Across generations, workers feel burned out from working more than one job, having a side hustle or serving as a caregiver for a relative or friend. Most workers reported concerns about making ends meet and saving for the future.
Most generations shared the same top financial priorities, such as paying off debt, saving for a major life event, covering basic living expenses, building an emergency savings fund, saving for retirement, supporting parents and supporting children.
For instance, only 18% of Gen X workers said they feel “very confident” they’ll be able to fully retire with a comfortable lifestyle, and only 23% said they “strongly agree” that they’re building a large enough retirement fund. Many plan to work beyond the traditional retirement age to bridge savings gaps, with 39% expecting to either not retire or to retire at age 70 or older and 56% planning to work during retirement.
Similarly, 57% of baby boomers expect to retire at age 70 or older or don’t plan to retire. They said they’re most worried about declining health that requires long-term care, outliving their savings and that Social Security will be lower or not exist in the future.
Half of women retirees said retirement has been more expensive than they expected, according to a Morning Consult and Corebridge Financial survey. Although half said their financial health is good, nearly two-thirds said they wish they would have started saving sooner.
As more employees decide to retire later, they’re also focusing on the transition to “pre-retirement,” or a transition period between full-time work and full retirement, according to a Human Interest report. The pandemic changed workers’ approach to savings, retirement age and pre-retirement.
In addition, workers say wage stagnation and higher costs have hindered life milestones, according to a Zety report. Half said they don’t feel able to start a family or grow them, 40% said they aren’t able to save for retirement, and 37% said they can’t afford to buy a home.
