Story at a glance
- A looming recession is causing concern among both retirees and workers planning for retirement.
- Inflation and market instability are among the top worries reported by retirees surveyed during the summer of 2022.
- The overwhelming majority of workers say having financial help is important when it comes to saving for retirement.
Thirty-four percent of millennial workers report being behind on their accumulated savings, according to new survey findings from Goldman Sachs Asset Management.
That’s in comparison to 53 percent of working Baby Boomers, and 51 percent of Gen X, while only 27 percent of Gen Z respondents reported being behind in their savings goals.
Findings of the Retirement Survey & Insights Report 2022 are based on responses from 1,566 individuals queried between July and August. The report focused on assessing retirement readiness among workers and managing income among retirees.
Findings also revealed “notable differences between Generation X, Millennials, and Generation Z when it comes to their most pressing concerns, savings levels and value of advice in planning for a comfortable retirement,” authors wrote.
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For example, 65 percent of Gen X respondents reported being stressed about managing their retirement savings, and more than half of retirees said their current income is less than 50 percent of their pre-retirement income.
Because many members of Gen X are homeowners, caretakers and parents in the prime of their career, these adults are at a critical stage of retirement saving and planning, authors stressed. Gen X is more likely to have significant retirement balances but is also most susceptible to market volatility and inflation, they said.
Inflation, meeting future health care needs and potential cuts to Social Security rank among the top worries for retirees.
“Though retirement should be a time to enjoy one’s savings, many are forced to live conservatively and navigate competing needs,” the report reads.
For those approaching retirement, many see part-time work as an option to meet financial challenges as it can add a sense of security going forward. Nearly 60 percent of retirees also said they entered retirement earlier than planned.
The survey was carried out prior to the Social Security Administration announcing an 8.7 percent cost-of-living adjustment hike last month — the largest increase seen in 40 years.
It also found the overwhelming majority of current workers agree financial help is important when it comes to planning for retirement. Top concerns among workers included having sufficient savings and inflation.
Stress levels are high among workers in general due to volatile markets, though only 34 percent reported they are not comfortable in their ability to manage money in uncertain times.
Experts predict a global recession is likely to come in 2023.
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