Pandemic Bright Spot: Older Americans Better Poised for Retirement
Older adults may be faring better than the rest of the population when it comes to managing their finances during the pandemic, based on a recent survey conducted by AgeUp, an annuity backed by MassMutual. The fintech service polled more than 1,300 Americans between the ages of 50 and 75 in March 2020 and polled a different group of the same demographic in January 2021. Of those polled most recently, 63% to 64% said they saw “no change” in the amount of money they expected to have in their senior years, all the way up to age 90 and beyond. Meanwhile, 15% said they were “more prepared” to have enough money in their 60s and 70s, while 10% said they expected to have enough money for retirement through their 90s and even beyond.
This report stands as a stark contrast to a recent Fidelity Investments survey which found that 82% of Americans felt that COVID-19 negatively impacted their retirement plans. On the other hand, 36% of those polled in the Fidelity survey said they felt “more confident” in their retirement plan now. Only 10% to 15% in the AgeUp study said they feel more prepared now to have enough money for retirement.
Two key differences between the studies? The ages of the respondents and the specifics of retirement duration. The AgeUp survey focused on respondents being prepared for retirement into their 90s and beyond.
The AgeUp survey also revealed some good news about older adults and their perspectives on the pandemic. More than half of all respondents (56%) stated that COVID-19 has had “no impact” on how long they expect to live, while 62% said the pandemic had only a “moderate” impact on their daily lives. In more good news, 81% of respondents said they have already received one dose of the vaccine or plan to get it as soon as the opportunity becomes available to them.
More from GOBankingRates