Transamerica Study Reveals the New Retirement: Working
According to The Center’s research, 40 percent of respondents now expect to work longer and retire at an older age since the recession began. Altogether, 39 percent of American workers plan to retire after age 70 or not at all, and over half (54 percent) of workers plan to work in retirement. Of those who plan on working after retirement or age 65, the most commonly cited reasons are out of necessity (44 percent).
While many workers may plan to work past the traditional retirement age or never retire, unforeseen circumstances could force them to stop working before they planned. The survey found the majority of workers are unprepared for this scenario—70 percent agree they could work until age 65 and still not have enough money saved to meet their retirement needs. This sentiment spans across age and income:
- 69 percent of those in their twenties and 72 percent of those in their thirties agree they could work until age 65 and still not have enough money saved,
- 80 percent of those with a household income (HHI) of less than
$50,000 agree, - 74 percent of those with an HHI
$50-$100,000 agree, - And, 59 percent of those with an HHI over
$100,000 agree.
Meanwhile, about a third of workers (31 percent) anticipate not just needing to provide for themselves in retirement, but for additional family members as well.
“With all of life’s uncertainties, planning not to retire is simply not a viable retirement strategy,” says
Retirement Without a Safety Net
The survey uncovered that a vast majority of workers (82 percent) do not have, or are unsure if they have, a backup plan in place in the event they cannot work as long as they need to, and that rate is even higher among those who plan to work past age 70 or never retire (87 percent).
“In today’s society, it’s more important than ever for workers to take personal responsibility for achieving a financially secure retirement. Our research highlights the risk American workers are taking by not having a backup plan in place in the event they are forced to retire sooner than expected,” says Collinson. “It is so vital that everyone have a firm grasp of their retirement saving and planning options, and have a contingency plan if they have to retire sooner than planned or are faced with a health issue that could quickly erode their savings.”
A large number (44 percent) of American workers do not have a strategy to reach their retirement goals. Of those who do have a strategy, only half have factored in healthcare costs and one-fifth have factored in long-term care insurance. Additionally, just 57 percent of workers have factored in
Overall, relatively few workers have a good grasp of how government benefits will impact their retirement: 40 percent know quite a bit or a great deal about
Seven Steps to Retirement Success
American workers estimate their median retirement savings needs at
How each worker dreams of spending their retirement is unique, but the tools to reach retirement goals are common to everyone. These tactics can help workers get started developing a strategy:
1. Get the conversation going with friends and family: Just 9 percent of workers frequently discuss saving, investing and planning for retirement with family and friends
2. Formulate a plan and write it down: Only 10 percent of workers have written out their retirement strategy
3. Get educated: The majority of workers (71 percent) say they do not know as much as they should about retirement investing
4. Consider retirement benefits as part of your total compensation: 53 percent of workers would select a job offer with a higher-than-expected salary, but poor retirement benefits, over one with excellent retirement benefits and minimum salary requirements
5.If your employer offers a plan, participate. And if your employer doesn’t offer you a plan, ask for one. Just 71 percent of workers report being offered an employee-funded plan at work, while 92 percent say a plan is an important benefit. However, almost one-quarter of workers (22 percent) who are offered a plan at work do not participate
6. Take advantage of the Saver’s Credit.Make catch-up contributions: Just 25 percent of workers are aware of the Saver’s Credit. Just over half of workers (56 percent) are aware that people age 50 and older may be allowed to make catch-up contributions to their retirement plan
7.Have a backup plan in the event you are unable to work before your planned retirement: Only 19 percent of workers currently have a backup plan
For the full survey results and for resources about retirement planning, visit www.transamericacenter.org.
About
About the 12th Annual
This survey was conducted online within
TCRS 1054-0511
[email protected]
[email protected]
Source:
Marshall & Ilsley Corporation Shareholders Approve Merger Agreement With Bank of Montreal
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News