Over half of Americans (53%) say COVID-19 is negatively impacting their retirement plans, according to a survey released Dec. 15 by Allianz Life.
Maybe they feel like they have more time to recover losses, but Millennials are more likely than Gen X or Boomer respondents to take action that could hurt their retirement outcomes. Allianz found half of Millennials have stopped or reduced the amount they save in their retirement accounts, compared with 41% of Gen Xers and 36% of Boomers.
Meanwhile, 48% of Millennials have made a withdrawal from their retirement accounts, compared to 32% of Gen Xers and 22% of Boomers.
Related: Study Reveals Spike in Early Retirement Withdrawals Among Young Investors
“We’ve watched as the pandemic continues to wreak havoc on peoples’ financial and retirement strategies, whether that is from unexpected job loss or early withdrawal of retirement assets,” Aimee Johnson, vice president of Advanced Markets and Solutions at Allianz Life, said in a statement. “It’s clear that people remain nervous about market risks and how their finances will continue to be impacted not only in 2021, but for many years ahead.”
The report is based on two surveys, each with over 1,000 respondents, conducted online in August and December.
The survey also found that 72% of Americans expect volatility to continue in 2021, and 44% are worried we haven’t seen the market bottom yet.
“While many of us are ready to leave 2020 behind, we shouldn’t forget some of the things we can take away from this unprecedented year, including how to prepare for and manage risks within a retirement strategy,” Johnson said. “Taking steps to help mitigate these risks now can make a big difference in both the long- and short-term as we wait to see what 2021 has in store for us.”
Related:
- Did Coronavirus Relief Help DC Participants Continue Saving?
- Pandemic Moving Retirement Timelines For 30% of Americans
- Why Millennials are ‘The Black Swan Generation’
Danielle Andrus works as an editor for The Financial Planning Association® (FPA®). Over the past 15 years, she has worked in various capacities, including writing and editing. Andrus has worked for several notable publications and outlets and spent more than seven years as the executive managing editor at ALM Media, publisher of Investment Advisor magazine and ThinkAdvisor.com. Before that, she was online editor for Summit Professional Networks, where she oversaw newsletter development for four magazines, including Benefits Selling, Senior Market Advisor, Boomer Market Advisor, and Bank Advisor.
