Older couple reviewing their retirement income.

COVID-19 Pandemic Uncovers the Importance of Retirement Financial Planning

Americans continue to have worries about their retirement, compounding health concerns brought on the COVID-19 pandemic. In addition, they report a lack of familiarity with common planning tools that could help them reach their retirement goals.

Retirement anxieties aggravated by uncertainty

In this new study, the Center for a Secure Retirement surveyed U.S. adults about their expectations for retirement amid the COVID-19 pandemic, with more than half reporting that their retirement planning has taken a hit over the past four months.

Key Findings

Four in five (81%) Americans are worried about their retirement.

Only about half of Americans surveyed said they have familiarity with long-term care insurance (54%), annuities (48%), or Medicare Advantage insurance (47%).

Of respondents age 55 and older, more than three-quarters (79%) said they expect Social Security benefits to be part of their retirement funding plan, while barely one-third (36%) of those younger than 55 said the same.

More than half (54%) of respondents say their retirement planning has taken a hit amid the COVID-19 pandemic, with losing money in the stock market (36%) and being forced to prioritize short-term savings (36%) marked as areas of top concern for those whose retirement has been impacted.

Nearly two-thirds (63%) respondents age 35 to 44 reported an impact on their future retirement due to the pandemic, compared to just one-third (35%) of those 65 and older.