Seventy-six percent of workers among four generations say their life priorities have changed as a result of the pandemic, and 56% cite saving for retirement as a financial priority, according to survey results released Wednesday from the Transamerica Center for Retirement Studies in collaboration with Transamerica Institute.

The survey looked at baby boomers — those born between 1946 and 1964 — down to their children and grandchildren through Generation Z — those born between 1997 and 2012. Regardless of generation, long-term care needs, healthcare care and living expenses are prime considerations for retirement planning, according to the report.

“Today’s workers are emerging from a pandemic and navigating megatrends such as population aging, increases in longevity, workforce disruptors, and concerns about Social Security,” Catherine Collinson, CEO and president of Transamerica Institute and TCRS, said in a statement.  

Baby boomers

Many of the oldest baby boomers already were mid-career when the retirement landscape began shifting from traditional defined benefit pension plans toward 401(k) or similar plans, which means they started saving in those vehicles at an older age than later generations and have not had the same long-term time horizon to watch their investments grow, according to the report. The pandemic placed them at risk of losing their jobs, volatility in the financial markets and increasing inflation. All of these factors could affect their plans to retire, the report said.

Forty percent of baby boomer workers expect Social Security to be their primary source of retirement income. Eighty-three percent are saving for retirement in an employer-sponsored 401(k) or similar plan and/or outside the workplace. They began saving at age 35 (median). Those participating in a 401(k) or similar plan contribute 10% (median) of their annual pay. Baby boomer workers have saved $162,000 (estimated median) in total household retirement accounts but only $15,000 (median) in emergency savings.

The average age of residents in long-term care is 82, according to experts at Evans Senior Investments. The oldest boomers are 76. 

“Baby boomers are extending their working lives, which can help bridge savings shortfalls. However, it’s important for them to have backup plans because life’s unforeseen circumstances could derail their best intentions,” Collinson said.

Generation X

The next cohort, Generation X, those born between 1965 and 1980, has been saving for retirement, but many may fall short, according to the survey. 

“They were early adopters of 401(k) plans and the first generation who could potentially have access to them for most of their careers. However, back in the 1980s and 1990s,

401(k)s were relatively primitive, with few investment options, limited investment education and guidance, and printed quarterly statements sent via U.S. mail,” according to the report. 

Overall, Gen Xers see themselves working beyond retirement age, according to survey results. Thirty-eight percent expect to retire at age 70 or older or do not plan to retire at all, and 55% plan to work in retirement. Only 27% said they have a financial strategy for retirement in a written plan.

Millennials

The first of the millennials, those born between 1981 and 1996, came of age around the time of the Great Recession, which began in late 2007.

Three in four millennial workers (76%) are saving for retirement in a 401(k) or similar plan and/or outside the workplace. Most began saving at age 25. The survey results show that those participating in a 401(k) or similar plan contribute 15% (median) of their annual pay. Millennial workers have saved $50,000 (estimated median) in total household retirement accounts but just $3,000 (median) in emergency savings. 

“Many millennials will be called upon as caregivers for aging parents or loved ones. But, unfortunately, this invaluable labor of love could be at the expense of their employment and ability to save for retirement,” Collinson said. “Forty-two percent of millennial workers are currently serving and/or have served as a caregiver for a relative or friend during their working career.”

Generation Z

Members of Generation Z, those born between 1997 and 2012, entered the workforce just before the COVID-19 pandemic. Unemployment rates were at historic lows at the time, then skyrocketed at the onset of the pandemic, and have since returned to lows as workers have been reluctant to return to the workforce. 

“Despite this tumultuous start to their careers, Generation Z will have even greater access to 401(k)s and workplace retirement plans than their predecessors,” according to the report.

Sixty-seven percent of Generation Z workers are saving through employer-sponsored 401(k)s or similar retirement plans and/or outside the workplace — and they started saving at the unprecedented young age of 19 (median). Those participating in a 401(k) or similar plan contribute 20% (median) of their annual pay. Generation Z workers have saved $33,000 (estimated median) in total household retirement accounts but only $2,000 (median) in emergency savings.

“As we look toward the future, a future in which all Americans can retire with dignity, policymakers must take center stage in orchestrating ways to strengthen the retirement system for current and future generations,” Collinson said. “Likewise, employers must continue to play a vital societal role by providing jobs, income and benefits to help workers protect their health and finances and facilitate saving and investing for retirement.”