Covid Is Severely Impacting Retirement Plans
According to a recent TD Ameritrade survey of over 1000 respondents with over $10,000 in assets, their sentiment of retirement has been greatly damaged by the COVID pandemic. The survey found that 71% anticipate that the pandemic will impact their retirement plans, with even more Gen Xers expecting an impact (76%). The TD survey also found that 43% of respondents felt like they were still recovering from the great recession even before the COVID pandemic hit, and for those that suffered a job loss during COVID, 84% anticipate an impact on their path to retirement. Additionally, for Millennials and Gen X 38 and 39% of respondents think they may have to work in retirement, and 30% of all respondents believe they will never retire.
These numbers maybe even worse than what appears in the TD survey, as a 2017 survey from Bankrate found that only 25% of Americans had over $10,000 saved and would potentially mean that TD’s survey is excluding 75% of the population who are in more dire financial straits.
As months go on, these signs are not good, but some potential silver linings are found among the responses. 72% of respondents say they will prioritize saving when the pandemic finishes, with 52% of the respondents saying their saving will not be the same as before. Any new stimulus checks will be seen as helpful to stay on track to retirement by 76% of respondents, and 75% say that making withdrawals from their savings to cover the pandemic’s impact is a last resort.
As the rollout of the vaccine continues, the Biden administration has set a goal of a proposed 100 million doses in the first 100 days. If this health goal, combined with any new fiscal stimulus package, is enough to improve the sentiment of Americans is yet to be seen.