An overwhelming majority of U.S. workers are still saving
for retirement despite the adverse economic, health and employment impact of
the coronavirus pandemic, the Transamerica Center for Retirement Studies said
Thursday.
Eighty-two percent of workers are saving for retirement
through a 401(k) or similar retirement plan and/or outside the workplace, the
center reported.
"Given the magnitude of the challenges workers have
faced during the pandemic, it is truly remarkable that they have maintained
focus on their future retirement," Catherine Collinson, CEO and president
of the center and of the Transamerica Institute, said in a news release. The
center is a division of the Transamerica Institute, a non-profit private foundation.
Baby boomers and Generation X were the biggest savers, each
at 84%, followed by millennials (82%) and Generation Z (70%), the news release
said.
The workers' savings data is part of the center's and
institute's 21st annual survey of U.S. workers.
Among the survey's findings:
Only 24% said they were "very confident" they
could fully retire with a "comfortable lifestyle."
Forty-nine percent said they plan to work past age 65 or
don't plan to retire, including 72% of Baby Boomers.
An estimated median of $93,000 in retirement savings for all
workers, leading to concerns of inadequate savings. Baby boomers had an
estimated $202,000 median, compared with estimated medians of $107,000 for
Generation X, $68,000 for millennials and $26,000 for Generation Z.
The news release also described a series of problems
encountered by workers. They include:
Forty-three percent experienced one or more "negative
impacts" to their employment including reduced hours, reduced salaries,
furloughs, layoffs or early retirement.
Sixty-two percent are paying off one or more types of debt
"as a financial priority," ranging from student loans to credit card
balances.
Sixty-six percent of workers are concerned about mental and
physical health.
The median emergency savings is $5,000, ranging from a
$2,000 median for the youngest (Generation Z) to $10,000 median for the oldest
(baby boomers).
The survey was conducted for the institute and center by The
Harris Poll between Nov. 17 and Dec. 29, 2020, covering more than 10,000
adults. The data analyzed in the news release covered 3,109 workers in
for-profit companies.
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