Industry News

On July 19, 2021, the National Institute on Retirement Security (NIRS) released its report, Generational Views of Retirement in the United States. The NIRS research provides an assessment of Americans’ views about retirement among generational lines.

According to the report, the U.S. is facing a retirement savings crisis and the shortfall may be attributed to many factors including: the shift away from pensions; stagnant wages; lack of employer sponsored plans; cuts to Social Security benefits and increasing costs for health, long-term care and housing in retirement.

The report indicated that those most concerned about the impact of the pandemic on retirement are Millennials and Generation X. It also found that those who are most concerned are planning to delay retirement. Across generations, there is extensive support for Social Security, including increasing contributions and expanding benefits. Notably, all generations have favorable views of defined benefit pensions, with Millennials holding the most favorable views. In addition, there is prevalent agreement generationally that pensions provide greater retirement security than 401(k) plans.

The report concludes that “all generations are worried about retirement, and there is strong support for pensions and Social Security. While there are significant differences in many specific areas, there is generational agreement that national lawmakers need to step up and do more to help Americans prepare for retirement.”

The report is available here.