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Concern Over Impact of COVID on Retirement Highest Among Younger Generations

Practice Management

The younger a person is, the higher the likelihood that they will be concerned about the effect of the pandemic on retirement security, recent research says.

Researchers at the National Institute on Retirement Security (NIRS) report in “Generational Views of Retirement in the United States” found in a recent national survey of 1,203 individuals aged 25 and older that older generations are less concerned about the effect of the pandemic on their retirement security than their younger counterparts. 
 

Generation Concerned About Retirement Security
Silent                                           25%
Baby Boom                                     42%
Generation X                                     54%
Millennials                                     64%

 

NIRS executive director and report co-author Dan Doonan indicated in a press release that he is not surprised at the results, and remarked that the two younger generations are the first that will enter retirement with no pension, have experienced multiple economic downturns and stagnant wages, and face the prospect of rising expenses for health care and long-term care as lifespans increase. 

But while concern is highest among the youngest of the generations studied, there is a kernel of good news—they still evince confidence that Social Security and traditional pension plans are an answer. Just over 60% expressed support for expanding Social Security, and 81% expressed a positive view of pension plans—more than all of their older counterparts. 

And they are not alone in their positive view of pensions. The NIRS says that all four generations view defined benefit plans favorably; they add that there is “wide agreement” that pensions are superior to 401(k) plans in providing retirement security. Similarly, the report says that there is “broad support across generations” for Social Security its expansion, and higher contribution levels.