The recession ended several years ago, but millions of Americans are still on shaky financial footing.
A new report by Transamerica Center for Retirement Studies (TCRS) finds anxiety about the nation’s retirement system across three generations surveyed.
Forty-five percent of baby boomers said they expected a decrease in their standard of living when they retire, while 83% of Generation Xers said their age cohort would have a harder time achieving financial security than their parents. And only 18% said they were very confident about their future retirement.
“Today’s workers are grappling with retirement security and challenged by the wobbly three-legged stool comprising Social Security, employer-sponsored retirement benefits and personal savings,” Catherine Collinson, president of TCRS, said in a statement.
According to workers in the survey:
• 61% had not fully recovered from the recession, including 41% who had somewhat recovered, 13% who had not yet begun to recover and 7% who may never recover.
• 77% were concerned that Social Security would not be available when they are ready to retire.
• Just 51% agreed that they were building a large enough retirement nest egg, including only 16% who strongly agreed.
• 65% believed that they could work until age 65 and not save enough to meet their needs.
The survey found 38% of workers are expecting income from continued work during their retirement—and 15% are expecting it to be their primary source of income in retirement.
The online survey was conducted within the U.S. by Harris Poll in the late spring among a nationally representative sample of 4,161 full-time and part-time U.S. workers in for-profit companies with 10 or more employees, including 1,353 millennials, 1,232 Gen Xers, 1,462 baby boomers and 114 workers who were born prior to 1946.
Two-thirds of boomers said they planned to or already were working past age 65 or did not plan to retire at all, and many expected to continue working at least part time in retirement. The need for income or health benefits was the main reason.
Eighty-seven percent of boomers expected Social Security to be a source of their retirement income, and 34% expected it to be their primary source of income. In addition, one-third looked forward to income from a traditional pension plan, and three-quarters from retirement accounts and other savings and investments.