The Impact of Covid-19 on Workers' Retirement Outlook

The Transamerica Center for Retirement Studies (TCRS) has been surveying the nation's workers about their retirement plans for two decades. TCRS fielded its 20th annual survey late in 2019. Then coronavirus happened, threatening to make the 2019 results irrelevant. So, TCRS rolled up its sleeves and went back into the field in April 2020 to measure the effects of the pandemic on retirement planning.

Many workers are worried, according to the April findings. Overall, 23 percent say the pandemic has made them less confident in their ability to retire comfortably. Boomer workers are most likely to say they have lost confidence...

Percent with less confidence in ability to retire comfortably because of the pandemic
Millennials: 20%
Gen Xers: 25%
Boomers: 32%

The 58 percent majority of all workers say their job has been impacted by the pandemic, with the largest share saying their hours have been reduced. A substantial 22 percent plan to or already have dipped into a retirement account because of the pandemic—33 percent of Millennials, 15 percent of Gen Xers, and 10 percent of Boomers.

Even a small dip into retirement savings is likely to make a large dent. Although most workers are saving for retirement, they haven't accumulated much. The median amount workers have saved for retirement is only $23,000 for households headed by Millennials, $64,000 for Gen Xers, and $144,000 for Boomers.

Source: Transamerica Center for Retirement Studies, 20th Annual Transamerica Retirement Survey