Almost half (40 per cent) of American workers said the coronavirus pandemic’s made them more concerned about planning for retirement, according to a survey by the Indexed Annuity Readiness Council.
The survey, which polled more than 2,000 adults in the U.S., also found 30 per cent of American workers said their plans to retire at some point have been delayed due to the pandemic. Meanwhile, 45 per cent said saving for the future is more of a concern since the onset of the global pandemic in March 2020. And 40 per cent said the coronavirus crisis has made them more concerned about planning for retirement.
In addition, the majority (86 per cent) of those surveyed who plan to retire said guaranteeing their income in retirement is important. And 77 per cent said it’s important they don’t outlive their income in retirement, while almost the same amount (76 per cent) agreed that protecting their retirement /account from loss is important to them. Just over half (54 per cent) of respondents said they’d consider working part time to supplement their retirement income, which rises to 69 per cent among those considering retiring within the next five years and 73 per cent among those planning to retire in five years or beyond.
However, another recent U.S. survey for Charles Schwab Retirement Plan Services Inc. by Logica Research found that optimism around reaching retirement savings goals has increased for 53 per cent of respondents who said they’re likely to meet their goals in 2021, compared to 37 per cent who said the same in 2020 amid the first year of the pandemic. Indeed, the percentage of respondents who said they weren’t likely to meet their retirement savings goals dropped from 14 per cent in 2020 to eight per cent in 2021.
The pandemic has also influenced attitudes toward finances, as 48 per cent said they plan to save more in general, 36 per cent noted they plan to increase their retirement account contributions, 35 per cent indicated they plan to invest more outside of their retirement account and 34 per cent said they plan to pay off debt.
Notably, the top obstacles to saving for retirement in 2021 were: stock market volatility (32 per cent), unexpected expenses (29 per cent), keeping up with monthly expenses (27 per cent), saving/paying for children’s education (21 per cent) and paying off credit card debt (20 per cent).
Almost a quarter (23 per cent) said they now plan to retire later than originally planned. Millennials were most likely (35 per cent) to have said they’ll be pushing off retirement, followed by generation Zers (32 per cent), while the number fell to 20 per cent for gen Xers and 13 per cent for baby boomers.