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December 22, 2016 at 09:16 AM
Less than 40% of workers said they have recovered financially from the recession that started in December 2007, according to a report from Transamerica Center for Retirement Studies. Thirteen percent said their recovery hasn’t started yet, while 7% said they may never recover.
That lukewarm recovery can be seen in respondents’ retirement outlooks. The survey found 41% of workers have somewhat recovered from the financial crisis; a similar percentage – 47% – are somewhat prepared for retirement. Twenty percent of respondents said they have fully recovered from the crisis; 15% are very confident they’ll live comfortably in retirement.
TCRS released in mid-December the results of its 17th annual retirement study, asking workers about their retirement outlook. It surveyed more than 4,000 adult workers, 6% of whom were still working past age 65.
“American workers are still struggling to regain their financial footing from the Great Recession and its after-effects,” Catherine Collinson, president of TCRS, said in a statement. “Most are concerned about the future of Social Security and few are very confident about their retirement prospects.”
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Respondents reported a median life expectancy of 86, but almost 40% said they expect to live at least to age 90. With such long retirements to plan for, they’re not at all confident they’ll be able to live well once they stop working. Eighty-two percent said their generation will have a “much harder time” securing their financial future than their parents did.
Respondents are splitting their focus between saving for retirement and just getting by. When asked about their financial priorities, 57% cited retirement savings as a priority, followed by 47% who are also struggling in their day-to-day.
