On Monday, the National Institute on Retirement Security (NIRS) released the findings of a new poll that revealed millennials and members of Generation X are more worried about their retirement security after the pandemic-induced economic crisis.
The study illustrated that 64% of millennials and 54% of Generation Xers are more concerned about achieving a financially secure retirement following the downturn. Twenty-one percent of millennials and 16% of Generation Xers also stated that they have changed when they plan on retiring, which is more than the other two generations surveyed (baby boomers and individuals in the silent generation).
All of the generations included in the research overwhelmingly believe that the country faces a retirement security crisis. In this category, baby boomers expressed the most concern at 72%, followed by Generation Xers with 69%, and millennials with 64%. Millennials and Generation Xers shared that they are most pessimistic about their retirement prospects, with 72% of millennials and 59% of Generation Xers claiming they are concerned about their ability to earn a secure retirement.
Despite reporting increased levels of anxiety on preparing for retirement, those in all generations believe that defined-benefit pensions offer the strongest pathway for workers to experience retirement security. At least 68% of each of the four generations observed in the report have favorable views of defined-benefit pensions, with millennials recording the highest favorable views. And, across generations, Americans expressed that workers with a defined-benefit pension plan were more likely to retire with security than those without one.
NIRS’ poll serves as another reminder that many Americans think they will encounter difficulties in planning their retirement. At the same time, most of them pronounce wide support for defined-benefit pensions, showing their importance in guaranteeing a secure retirement.