Young Adults Are Pretty Pessimistic About Retirement
Our take on the most relevant or interesting figure in personal finance today
That’s the percentage of 20-somethings worldwide who said they are not on course to achieve their full retirement income needs—and that was even before the pandemic rocked the global economy, a newly released poll said.
Pessimism about retirement abounds for young people, who were more likely than older age cohorts to lose their jobs when the pandemic hit, an October paper from the Economic Policy Institute said. So it may not be surprising to see that only 20% of people aged 20 to 29 worldwide believe they are on course to achieve their full retirement income goals, according to the survey of residents of 15 countries conducted last January and February by the nonprofit Transamerica Center for Retirement Studies, Aegon Center for Longevity and Retirement (ACLR), and Instituto de Longevidade Mongeral Aegon. Eleven percent said they believe they are on track to achieve about 75% of their retirement income needs.
The figure for U.S. respondents in the age cohort, which spans Generation Z and millennials, was slightly better at 26%. Among all age groups, just 25% said their retirement plans were fully on track.
“Navigating our 20s was a struggle before the pandemic," Heidi Cho, a millennial retirement expert for the Transamerica Center for Retirement Studies, said in the press release. "Now, many of us are in a more precarious financial situation. From high rates of student debt and unemployment to unaffordable housing, a variety of factors are stacking against young Americans’ ability to achieve long-term financial security.”