Despite pandemic-related financial strains, workers have kept retirement savings top of mind as many have reduced spending to stash away money for the future, according to a study by Transamerica Center for Retirement Studies in collaboration with Transamerica Institute.

The study, “Living in the COVID-19 Pandemic: The Health, Finances, and Retirement Prospects of Four Generations,” found that 82% of workers are saving for retirement through a 401(k) or similar plan, and/or outside the workplace. The older generations are saving at a similar rate, the study found, with baby boomers and Generation X both saving at a 84% clip, followed by millennials at 82% and Generation Z at 70%.

And while workers are staying abreast of retirement savings, the study found that many are concerned they may never have enough to retire. In fact, 49% of workers expect to work past age 65 or do not plan to retire, an expectation that is higher among older workers, the report noted. Seventy-two percent of boomers either expect to or are already working past age 65 or do not plan to retire, compared with Gen X (37%), millennials (36%) and Gen Z (51%).


The report further noted that one in five workers expect to retire later than expected because of the pandemic.

The survey findings revealed that workers across all generations were impacted by the pandemic in areas including health, financial well-being, and the ability to save and invest for retirement.

The report found that 60% of workers have made adjustments to managing their financing, including reducing day-to-day expenses (32%), dipping into savings accounts (24%), accumulating new credit card debt (17%), reducing or stopping contributions to retirement accounts (14%) and forgoing health care (14%).

Forty-three percent of respondents aid their employment was negatively impacted by Covid in the form of reduced hours (27%), reduced salaries (14%), furloughs (10%), layoffs (8%), and early retirement (4%). The younger generations were hardest hit, the study noted.

The study also found that workers are carrying a median balance of only $5,000 in emergency savings. Gen Z has the smallest amount at $2,000.

“Workers are weathering a public health crisis and contending with fears about the virus and vaccinations, concerns for family and friends, employment impacts, and financial setbacks,” Catherine Collinson, CEO and president of Transamerica Institute and TCRS, said in a statement.

The survey, which was conducted by the Harris Poll in November and December 2020, represents a national sampling of 10,000 U.S. adults.