The ongoing coronavirus pandemic changed Millennials’ and Zoomer’s plans when it comes to retirement. Namely, according to the study conducted by Northwestern Mutual, both intend to retire before they turn 60.
To be more precise, the average expected retirement age for Millennials is 59.5, whereas Gen Z’s average retirement age is now 59.4.
At the same time, Gen X’s average expected retirement age is 64.3, whereas Boomers plan to work the most — until they reach 68.3 years of age.
That said, among the 2,320 polled 18+ US citizens, 35% stated that the ongoing pandemic changed their initial retirement plans. On the one hand, 24% of responders want to retire later than previously planned. On the other hand, 11% want to retire earlier than planned.
Furthermore, due to the pandemic, many people turned to remote working, which also had a major impact on people’s choices for retirement. For example, 55% of people will delay their retirement plans to save more money.
48% of people who want to retire earlier plan to move up their initial retirement date by 3–5 years. Out of this, 42% want to spend more time with their family, whereas others want to focus on things not related to work, such as hobbies (according to 33% of surveyees).
What’s more, the pandemic didn’t just change people’s plans regarding retirement age. It also left a significant mark on their retirement savings. In fact, 44% of non-retirees believe their retirement plan is off-track.