Sixty-five percent of Americans say they now are paying more attention to what they are saving and spending, and 58% have cut back on their spending, according to a new retirement risk readiness survey of more than 1,000 Americans aged 25 years and older.
Results of the survey, conducted in December by Allianz Life Insurance Co. of North America, also showed that the pandemic has motivated those closest to retirement to become more active in reviewing their current retirement planning activity. Compared with the year before the pandemic began, more near-retiree respondents said they had taken steps this year to save enough in a retirement account (29% versus 23% in 2020); diversify their retirement savings (42% versus 27% in 2020); research expenses and risks associated with retirement (43% versus 35% in 2020); and make a formal plan with a financial professional (37% versus 29% in 2020).
In a similar vein, more than 30% of employees increased their retirement savings last year, despite the year’s economic uncertainty. That’s according to another survey of more than 1,000 Americans aged 25 to 70 conducted by Greenwald Research on behalf of TIAA.
“Black swan events like this global pandemic are often the trigger that convinces people they need to take a more proactive approach to managing risks that may come in retirement,” said Kelly LaVigne, vice president of consumer insights at Allianz Life. “In that respect, it is encouraging to see that many Americans are taking this as a wake-up call and adding more risk management measures, including sources of guaranteed and supplemental retirement income, into their retirement planning process.”