Americans recognize impending retirement crisis: NIRS

Workers want guaranteed income, pension plans.

Three-quarters of respondents said all workers should be able to access a pension plan, and that the government should make it easier for employers to offer them.

The COVID-19 pandemic has made Americans COVID-19 more anxious about their retirement prospects, and many long for the days when pensions were the dominant retirement savings plan, according to a report from the National Institute on Retirement Security.

The Retirement Insecurity 2021 survey found 51% of respondents doubt their ability to achieve financial security when they stop working, and one-third of workers have changed their retirement date or are thinking about it — two-thirds of those are looking at a later date than they had anticipated, thanks to the pandemic.

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NIRS surveyed over 1,200 adults over age 25 in December for the report.

Respondents aren’t just worried about themselves. More than two-thirds say the country is facing a retirement crisis. Sixty-eight percent believe the average worker can’t save enough on their own to promise a financially secure retirement.

“Americans see the retirement writing on the wall. A large swath of Americans is concerned about their economic security in retirement and increasingly see retirement as elusive,” according to the report.

The report identified several reasons that Americans say are affecting retirement prospects in this country:

Social Security 

Respondents of all political stripes agreed there is a crisis, and that politicians don’t understand how difficult it is to save adequately, but were split on whether Social Security should be expanded to better support retirees. The program itself is highly valued, with 79% of respondents saying protecting Social Security should be a priority, regardless of other budget issues. However, there was little support among Republicans (37%) and Independents (45%) for expanding the program, while Democrats (64%) were largely in favor.

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Pensions

Respondents came together again regarding pensions. Roughly three-quarters or respondents, across political lines, have a positive view of pension plans, and between 77% and 81% believe they’re superior to 401(k) plans. Three-quarters of respondents said all workers should be able to access a pension plan, and that the government should make it easier for employers to offer them. The guaranteed income promised with a pension plan was very attractive to respondents; 54% said they would be willing to trade some of their retirement savings for a guaranteed income option.

“The U.S. is facing a retirement savings crisis that likely is worsening thanks to yet another economic crisis. Except for wealthier Americans, the typical working American is not on track to maintain their standard of living in retirement,” according to NIRS.

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