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FIAP > Destacados Boletines > United States: According to the Transamerica Institute, many workers are concerned about the future of the PAYGO pension system.
24 November, 2022

United States: According to the Transamerica Institute, many workers are concerned about the future of the PAYGO pension system.

According to Transamerica’s 22nd Annual Retirement Survey, workers more often cite self-financed savings (49%) as their primary expected source of retirement income, including the 36% of workers who expect to rely on 401(k)s, 403(b)s and IRAs (Individual Retirement Accounts), and the 13% who expect to rely on other savings and investments. Baby Boomers (40%) are significantly more likely to expect Social Security (PAYGO system) to be their primary source of income during retirement, compared to Generation X (25%), Millennials (17%), and Generation Z (16%). In contrast, Millennials (52%), Generation Z (52%), and Generation X workers (50%) are more likely than Baby Boomers (37%) to cite self-financed savings, such as 401k(s), 403(b), IRAs, and/or other savings and investments. 14% of all workers expect their main source of retirement income to come from work, a finding most frequently cited among Millennials (17%) and Generation Z (16%), compared to Generation X (11%) and Baby Boomers (10%)11. On the other hand, the report shows that 71% of workers agree with the statement: “I am worried that when I am ready to retire, Social Security will not be there for me,” including 33% who “totally agree” and 38% who claim to be “somewhat in agreement.” Generation X workers (39%) and Millennials (35%) are more likely to “strongly agree,” compared to Generation Z (29%) and Baby Boomers (23%).

To review the full survey, click here.

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