According to Fidelity Investment’s 2022 State of Retirement Planning Survey, 55% of younger employees no longer “see a point in saving for retirements until things return to normal.”
The findings of the survey reveal the pessimism of today’s workforce, many of whom have faced countless losses due to the pandemic.
However, 38% of next generation demographics show a slightly more optimistic view about being able to retire than they were prior to the pandemic. In comparison, just 17% of Gen Xers felt more confident about retiring.
“Gen Xers are in a kind of twilight zone,” said Rita Assaf, vice president of retirement at Fidelity Investments. “Gen Xers are stuck in the middle, and looking at inflation and other economic concerns for the foreseeable future — and the impact that may have on their potential retirement savings.”
Boomers are close to retirement, while Millennials and Gen Zers still have time to work and save towards retirement.
Of younger investors, 30% said that their retirement plans hindered by the pandemic may take a year or less to rebound. However, 27% of Gen Xers said they are four to five years from recovering.
Inflation has also become a factor in retirement savings, with seven in 10 respondents expressing concern over rising prices.
“It’s important to note that the worst days in the market are very often followed by the market’s best days, which is another powerful reason not to overreact or try to time the market,” said Assaf.