Gen Z Workers Hit Most By Pandemic’s Impact – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Life Insurance
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Content
    • Webinars
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
  • Insider
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Advisor News
Top Stories RSS Get our newsletter
Order Prints
October 13, 2021 Top Stories No comments
Share
Share
Tweet
Email

Gen Z Workers Hit Most By Pandemic’s Impact

Young people can be helped make better financial choices if they get the right financial education early on, studies show.
By Susan Rupe

Almost half of American workers said their financial situation has been negatively impacted by the COVID-19 pandemic, but that impact varies among the four generations who are in the workforce.

That was among the findings of the 21st annual Retirement Survey of Workers conducted by the Transamerica Center for Retirement Studies.

Catherine Collinson, president and CEO of the Transamerica Institute and Transamerica Center for Retirement Studies, discussed the pandemic’s impact on four generations of workers during Wednesday’s portion of the American Council of Life Insurers annual conference.

Although most of the workers surveyed appeared to be upbeat about their personal lives, 40% said they often feel anxious and depressed while 37% said they have trouble making ends meet.

More than one in four surveyed (43%) experienced one or more negative impacts from the pandemic. Of these, 27% had their work hours reduced, 14% took a salary cut, 10% were furloughed, 8% were laid off and 4% retired. Generation Z workers were the most likely to be affected, with 59% reporting a negative financial impact, while baby boomers were the least likely to be financially hurt by the pandemic (30%).

Only 24% of those surveyed said they are confident they will be able to fully retire with a comfortable lifestyle. Millennials (30%) are more likely to be “very” confident than boomers (21%), Generation X (19%) and Gen Z (16%). Sixteen percent of workers across generations indicate their retirement confidence declined as a result of the pandemic.

Looking at their expected sources of retirement income, 71% plan to take income from 401(k) or 403(b) accounts or individual retirement accounts, 66% expect to receive Social Security and 37% plan to continue working. This high percentage of workers who plan to extend their working years led Collinson to describe job earnings as the “fourth leg” in what usually is called the three-legged retirement income stool (Social Security and government programs, pensions or employment savings plans, and individual savings).

Eighty-two percent of workers are saving for retirement through employer-sponsored plans, such as a 401(k) or similar plan, or an individual plan, the survey showed. But retirement savings may be inadequate. Total estimated median household retirement savings among all workers is $93,000.  Boomer workers have the most retirement savings with a median of $202,000, compared with Gen X ($107,000) millennials ($68,000) and Gen Z ($26,000).

Collinson listed 10 ways to strengthen retirement security. They are:

  1. Address Social Security and Medicare funding issues.
  2. Ensure accessible and affordable health care for all.
  3. Engage leaders from across sectors and disciplines to collaborate, innovate and implement financing and delivery models for long-term care.
  4. Support family caregivers.
  5. Further incentivize small companies to offer employee benefits.
  6. Enhance existing tax incentives for workers to save for retirement.
  7. Facilitate retirement savings to last a lifetime.
  8. Encourage employees to implement age-friendly business practices as part of their diversity, equity and inclusion efforts.
  9. Bridge the digital divide.
  10. Promote lifelong learning.

 

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.

© Entire contents copyright 2021 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

 

 

Older

Flirting with Fiduciary — with Bradford Campbell

Newer

Ex-Employees: Shurwest Execs Knew About Dubious IUL Sales

Advisor News

  • What Rising Prices Could Mean For Your Clients’ Retirement Plans
  • 38% Of Investors Pulled Money From Stock Market In The Past Year
  • Financial Focus: Retirement Money Management
  • Americans Spread Their Money Across More Firms, Survey Finds
  • Now Is A Good Time To Buy This Inflation Savings Bond
More Advisor News

Annuity News

  • LibertyMark Freedom Fixed Indexed Annuities Launch
  • Nationwide Adds BNP Paribas Global H-Factor Index To FIA
  • Transamerica Launches Structured Index Advantage Annuity
  • Recommending FIAs: Start With The Client’s Objective
  • NC Man Wins First $5 Million Prize In Scratch-Off Game
Sponsor
More Annuity News

Health/Employee Benefits News

  • AHIP’s Policy Roadmap Aimed At Increasing Health Care Access, Affordability
  • Don’t Fall For Joe Namath’s Ads
  • Health Insurance Can Now Help Some Californians Find Housing
  • $2.7B Settlement In CalPERS Long-Term Care Insurance Lawsuit Is Canceled
  • Virginia Poised To Review Eligibility Of 2 Million In Medicaid ‘Safe Haven’
More Health/Employee Benefits News

Life Insurance

  • The 5 Secrets To Retaining Financial Sales Professionals
  • Life Insurance Activity Continues Dip In April But Still Stronger Than 2021, MIB Reports
  • Transamerica Adds Execs To Annuity And Life Insurance Team
  • Northwestern Mutual Invests $5M In Black-Led Financial Institutions
  • Protective Life Closes On AUL Acquisition
More Life Insurance

- Presented By -

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

FEATURED OFFERS

Get Linked INN to your industry Connect with INN on LinkedIn to be first on all the news and insights that matter to your industry.

Press ReleasesAll press releases

  • OneAmerica Commits $1 Million Toward Financial Literacy
  • Transamerica Structured Index Advantage Annuity Offers Investors More Certainty with Upside Growth and Downside Protection
  • Senior Market Sales Creates First-of-Its-Kind Lead Acquisition Platform
  • Growing financial services firm Kuvare opens Des Moines office in East Village, continuing expansion in Iowa
  • BetterLife Selects iPipeline® to Digitally Transform Its Business & Better Serve Future Generations
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Content
  • Webinars
  • Monthly Focus

Top Sections

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2022 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • Sitemap
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.