Last year around Halloween we shared five scary facts about the current state of retirement security. Unfortunately, the 2021 retirement landscape is no less terrifying. In fact, the National Institute on Retirement Security released a number of studies this year which show that many Americans fear that a secure retirement isn’t possible for them.
According to the Generational Views of Retirement in the U.S., a report released in July of this year, millennials and Generation Xers are more worried about retirement compared to older generations. As the COVID-19 pandemic wanes, 64% of millennials and 54% of Generation X are more concerned about their retirement security. Millennials and Generation X fear so much the impact of COVID-19 on their retirement that they plan to delay retiring by at least a few years now.
Across all generations – millennials, Generation X, baby boomers, and the silent generation – there is pessimism about retirement. In fact, all generations agree that the U.S. faces a retirement crisis, with millennials and Generation X feeling the strongest about this.
While political consensus seems like it might be difficult to come by in these divisive times, there are solutions to the retirement crisis on which most Americans agree. According to Americans’ Views of State & Local Employee Retirement Plans, 80% of Democrats, 75% of Republicans and 78% of Independents agree that all workers should have access to a pension. More broadly, 77% of Americans say all workers should have access to a pension, not just state and local employees.
While the prospect of a secure retirement may seem frighteningly out of reach for most Americans, particularly younger Americans, the will of the American people is clear: Pensions are a reliable way to ensure a secure retirement. We can only hope the looming retirement security crisis has a happier ending than most horror movies.