Americans today are experiencing more anxiety as they figure out how to come up with enough money to fund their retirements, compared to their counterparts at the end of the Great Recession, according to a new survey conducted by the Pew Research Center.
Although the economy and stock market seem to be in a slowly recovery, almost four in 10 Americans are not sure that they will have the needed financial funds to retire. A similar report in 2009 found that one in four adults was concerned that they would not be financially ready for retirement, according to Pew.
Surprisingly, the retirement anxiety is highest among young adults, a significant shift from three years ago when workers in their 50s were most worried that they would outlive their retirement savings.
Over half of adults, ages 36 to 40, say that they are not confident that their nest eggs will last through retirement—three times the number who reported similar worries in 2009.
According to the researchers, the shift reflects major events that have shaken the economy in recent times. Weighed down by plunging home values, the median wealth of adults ages 35 to 44 was less than half of what it was for people in that age group in 2001.
“The median net worth of this group has fallen at a far greater rate than for any other age group both in the past 10 years and since the beginning of the Great Recession,” according to the researchers.
On the other hand, people ages 55 to 64 lost just over a fifth of their wealth in that time period, according to Pew, which polled 2,508 adults in its survey.
The retirement worries of younger adults are amplified by the fact that these individuals are less likely than older workers to have guaranteed pensions, meaning they may have to depend on their own assets to supplement Social Security during retirement.
Source: Pew Research Center