New Voya Survey Finds Half of Employed Americans Plan to Work in Retirement as a Result of COVID-19
55% of working individuals also report preferring to save enough to last through retirement compared to being completely debt-free
Voya Financial, announced new findings from a consumer survey revealing that, as a result of the COVID-19 pandemic, more than half (54%) of employed Americans are now planning to work in retirement — with many (40%) noting an interest to have a “safety net” to cover unexpected costs and prepare for market volatility as their reasons.
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Voya’s data also showed that, despite a world of financial uncertainty, saving for retirement still remains a top priority for many: More than half (55%) of individuals said they would prefer to save enough to last through retirement rather than be completely debt-free. This preference for retirement savings over being debt-free was even more prevalent among individuals currently receiving investment guidance through a financial professional or managed account (67%) and those who are enrolled in a retirement savings plan (65%).
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“While we know many are having to address financial challenges due to COVID-19, it is a positive to see that the majority see the value in saving for a secure financial future,” said Charlie Nelson, CEO of Retirement and Employee Benefits for Voya Financial. “In addition to our recent survey, Voya’s own participant data shows signs of a focus on the long term: Of those participants in Voya-managed retirement plans who recently changed their savings rate, nearly 70% increased their contributions.1”
When it comes to generational views on retirement goals, Voya’s data also found that COVID-19 has had an impact on retirement planning for all savers. The survey notes that 59% of currently employed baby boomers plan to work in retirement as a result of the pandemic, as well as 60% of Generation X and nearly half (49%) of millennials. The good news is that this sentiment about retirement is correlating to actions when it comes to saving for the future, particularly for millennials. Voya’s own participant data also shows that among those who have recently changed their savings rate, approximately two-thirds (64%) of millennials are taking steps to increase their contributions, a growth of 16% over the year prior.2
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