Close to half (45%) of baby boomer workers are expecting a decrease in their standard of living when they retire, according to new research.
The Transamerica Center for Retirement Studies unveiled this finding in a new report evaluating the retirement outlook of American workers by generation. The 17th annual Transamerica online survey, “Perspectives on Retirement: Baby Boomers, Generation X, and Millennials,” conducted by Harris Poll, polled 4,161 full-time and part-time workers, including 1,353 millennials, 1,232 generation Xers, 1,462 baby boomers and 114 workers who were born prior to 1946.
“Today’s workers are grappling with retirement security and challenged by the wobbly three-legged stool comprising Social Security, employer-sponsored retirement benefits and personal savings,” says TCRS President Catherine Collinson.
The survey finds that among the generations surveyed, 83% of Generation X workers believe that their generation will have a harder time achieving financial security than their parents’ generation. And among Millennial workers, the youngest generation in the workforce, only 18% are very confident about their future retirement.
“Although the Great Recession ended years ago, millions of Americans are still regaining their financial footing,” says Collinson. “As each year passes, people’s fears about our current retirement system come more sharply into focus.”
Key findings from the survey raise questions about the stability of the U.S. retirement system’s three-legged stool:
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Sixty-one percent of workers have not fully recovered from the Great Recession, including 41% who have somewhat recovered, 13% who have not yet begun to recover, and 7% who may never recover;
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Seventy-seven percent of workers are concerned Social Security won’t be there when they are ready to retire;
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Only 51% of workers agree that they are building a large enough retirement nest egg, including only 16% who strongly agree; and
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Sixty-five percent believe they could work until age 65 and not save enough to meet their needs.
“Amid retirement savings shortfalls, American workers are attempting to prop up our system’s three-legged stool by adding a fourth leg: working during retirement,” says Collinson.
The survey finds that 38% of workers are expecting income from continued work during their retirement and 15% are expecting it to be their primary source of income in retirement.
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