Young Americans Are Waiting Until ‘Things Return to Normal’ to Save for Retirement
March 18, 2022
Between the pandemic, surging inflation, and Russia’s invasion of Ukraine, Americans have spent the last few years uncertain about their financial plans, and now, more than half of young Americans say they “don’t see a point in saving for retirement until things return to normal,” according to a new survey.
The majority, 55%, of Americans between the ages of 18 and 35 have put their retirement planning on hold, according to Fidelity Investment’s 2022 State of Retirement Planning Survey.
While Gen Z and Millennial savers are putting their plans on hold, they are optimistic that they will be able to get back on track, with 38% saying they are more confident about being able to retire now than they were prior to the pandemic. Just 17% of Gen Xers felt more confident about retirement.
Young savers are also more confident that they will be able to quickly get back on track. Among respondents who said their retirement plans took a hit during the pandemic, nearly 30% of younger investors figure it will take a year or less to recover. Among Gen Xers, 27% estimated that it will take four to five years to get their savings back on track.
Savers of all ages are concerned about rapidly climbing prices, with nearly 70% saying they are very concerned that inflation will derail their retirement planning. More than 30% of the respondents said they are not sure how they will be able to keep their savings up with inflation.