Young Americans Are Not Hopeful About Retirement

A significant proportion of young Americans are pessimistic about their retirement prospects, according to an exclusive Newsweek poll.

The survey, conducted by Talker Research between December 23 and 30, saw 1,000 employed U.S. adults quizzed on how they view retirement.

As part of the poll, respondents were asked: "Do you believe retirement will still be financially viable for most Americans in the future?" The results highlighted a clear sense of unease about the future among two key age demographics.

Forty-one percent of Gen Z respondents (aged 18-26) answered "no," with a further 11 percent admitting they were "not sure." There was a similar level of pessimism among millennials with 32 percent answering "no" and 15 percent saying they were "not sure."

The downcast outlook among Gen Z and millennials was further emphasized in the responses to another question on the poll asking: "When you retire, do you expect to be better/worse off than you are right now, or about the same?"

One in four (25 percent) Gen Z respondents expected to be worse off, with 20 percent predicting they will be in just the same position as they are now when they retire. When it came to millennials, 22 percent expected to be worse off while 26 percent thought things would stay the same.

Reflecting on these findings, Jordan Mangaliman of Goldline Financial Services in Fullerton, California, told Newsweek a number of factors are likely influencing this outlook among young Americans.

"Current market and economic conditions have led to a pessimistic view on retirement from Gen Z and millennials," he said. "One reason could be due to inflation. The rising cost of living has skyrocketed in the past few years. With the younger workforce starting with lower paying jobs, they may feel they are barely making ends meet and don't have enough money to even think about investing and retirement."

The impact of inflation was highlighted in a recent viral video in which a mom compared grocery store prices from 2019 with the cost of the same items today.

Mangaliman also noted that many within these generations are also managing high levels of student loan debt.

"Millions of Gen Z and millennials are carrying student loans they have to focus on paying off for years," he said. "This puts a major strain on their finances and discretionary income. With more income allocated to pay off student loans and other debts, investing for retirement is not high on their priority list."

He also suspects that many within these age groups have grown up with "little to no financial education" and are paying the price as a result.

"Without proper guidance and advice, Gen Z and millennials may not know where to turn on exactly how to save and invest for retirement," he said.

The findings come from the same survey that revealed many Gen Z workers believe the age of retirement should be lowered.

The research also revealed that many younger generations are open to the idea of a mandatory retirement age for older workers to make room for them in the workforce.

This random double-opt-in survey of 1,000 general population Americans was commissioned by Newsweek between December 23 and 30. It was conducted by market research company Talker Research, whose team members are members of the Market Research Society (MRS) and the European Society for Opinion and Marketing Research (ESOMAR).