In what feels like a New York minute, the coronavirus pandemic has totally shifted how people view and plan for their futures. Especially with retirement.
“The coronavirus pandemic and economic downtown are intensifying existing risks to retirement security, and creating an even greater urgency for a new social contract among governments, employers, individuals and other stakeholders,” said Catherine Collinson, CEO and President of the Transamerica Center of Retirement Studies. She goes on to explain that retirement systems around the world have been undergoing severe strain due to increases in longevity, population aging, and evolving employment trends.
According to a newly released study by the Center, employees in the U.S. and globally will need 67% of their current income in retirement savings, however, only 25% believe they are on the course to meet that need. Additionally, with experts predicting that millennials and Gen Z will be bearing the brunt of the post-COVID economic burden, the above statistics are a harsh truth for these generations.
As the number of unemployment claims continue to rise, the Center says age-friendly employers can improve the situation by offering retirement, health and welfare benefits designed with portability in mind so that workers can maintain them as their employment situation changes. Financial training, education and wellness programs and pliable work arrangements should also be provided.
To view the study referenced in this post and more studies by the Transamerica Center of Retirement Studies, please click here.