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LOS ANGELES — The expectations for American workers about their retirement is grim according to new research released by Transamerica Center for Retirement Studies. The company released a new study today that indicates today’s workers are expecting to work longer and have a declining living standard once they retire.
Among the generations surveyed, 45 percent of Baby Boomer workers are expecting a decrease in their standard of living when they retire. Eighty-three percent of generation X workers believe that it will be harder for their generation to achieve financial security than it was for their parents’ generation. Millennial workers, the youngest generation in the workforce, think they will have it even worse with only 18 percent very confident about their future retirement.
The study was one of the largest and longest running national surveys of its kind.
The study also found that workers are still suffering the effects of the Great Recession. Sixty-one percent of workers have not fully recovered from the Great Recession. Forty-one percent have somewhat recovered, 13 percent have not yet begun to recover and seven percent may never recover.
A vast majority (77 percent) are concerned Social Security won’t be there when they retire. Only 51 percent of workers think they are building a large enough nest egg for retirement. Many workers believe it doesn’t matter how long they work, as they will not have enough to meet their needs even working until 65.
Many workers expect to never fully retire. The survey found that 38 percent of workers expect income from continued work during their retirement. Fifteen percent expecting it to be their primary source of income in retirement.
“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,” said Catherine Collinson, president of TCRS.