Concerns about potential financial insecurity upon retirement permeate respondents’ fears, measured according to their generation and political affiliation. While those who identify as Democrats and independents are slightly more anxious (70% each), the clear majority of Republicans (62%) also said they fear financial instability in later years, while Generation X and millennials are more vulnerable to retirement than theirs. Baby boomers analogs.
That’s according to a poll by the National Institute of Retirement Security (NIRS) published this week and summed up by a key research figure in a recently published column.
“More than two-thirds of Americans (67%) say the country is in a retirement crisis. And more than half (56%) are worried that they will not be able to retire financially, says Dan Dunan, chief executive of NIRS, in a Forbes column in which he analyzes the organization’s survey results. “American concerns about retirement are justified. More and more studies show that most Americans face a significant shortage of retirement savings. ”
This applies to people who successfully use all their financial resources, including through the use of reverse mortgages in accordance with previously published study Boston College Center for Retirement Research (CRR) in early 2021.
It is understood that the fallout from the ongoing COVID-19 coronavirus pandemic has only exacerbated the insecurity that many believe is related to their retirement benefits, Dunan said.
“We asked Americans about the economic impact of the pandemic on their financial future, and 51% said they were more worried about retirement,” he writes. “Among Americans who have changed or thought to change when they retire, 67% say they plan to retire later than originally planned due to COVID-19.”
The study asked respondents to indicate political party affiliation, Dunan said, and found that while the United States is experiencing a period of intense political polarization between Democrats and Republicans, many Americans are united in their overarching concern for security in retirement. …
However, representatives of different generations are less unanimous in their collective views on the impending retirement crisis.
“Most Democrats (70%), Independents (70%) and Republicans (62%) agree that the country is facing a retirement crisis,” Dunan writes based on the data. “But while the concern for retirement is the same for all parties, significant differences arise between generations. Millennials (72%) and Generation X (59%) are significantly more pessimistic about achieving financial security at retirement compared to baby boomers (43%) and the silent generation (26%). “
This matches some pre-pandemic data compiled by the Consumer Financial Protection Bureau (CFPB). a year ago, which stated that the older generation as a whole has more savings than the younger generation.
Like before detailed According to RMD, the oldest Generation X members will be eligible for a Home Equity Conversion Mortgage (HECM) loan starting in 2023, but some of them will qualify for a private reverse mortgage as early as 2021. direct comparisons of Gen X to their baby boomer parents, especially when it comes to the ways the reverse mortgage industry can appeal to a new generation when the time comes.