What do Workers Believe they will be doing at the Age of 67?
When do Americans plan to retire?
Almost half (48%) of America’s workers plan to work past the age of 67.
- Younger generations are more often planning to retire at age 67 than their older counterparts. Fifty-eight percent of workers age 30-39 believe they will be retired at 67 compared to only 45 percent of those aged 60 and over.
- Nearly one in three Americans plans to work at least part-time past the age of 67.
Why are Americans working later in life?
Four out of the five reasons cited for continuing to work past age 67 are not financial.
- The number one reason (83%) people don’t plan to retire at age 67 is to stay mentally engaged.
- Among those with total net assets of less than $100,000, 81 percent said they will continue to work to earn enough money to live well, virtually the same percentage that want to keep working to stay mentally engaged.
- Among those with total net assets of between $100,000 and $500,000, 72 percent will continue to work because they love their careers and 66 percent said they were not ready to end their careers.
What are the factors influencing retirement?
Americans have less confidence in factors influencing their retirement over which they have less control.
- Americans have lower confidence in the economy than any other factor measured by the Unretirement Index.
- The younger generations have little confidence that government benefit programs like Social Security and Medicare will be available when they retire. Sixty three percent of workers age 30-39 don’t believe that Social Security will be available and also cite employer healthcare benefits as a reason to work past age 67.
- American workers are much more likely to cut back on spending and reduce debt to improve their retirement prospects rather than seek to increase their income or change their investment mix. Eighty-two percent would reduce spending while only 58 percent would alter their investments.
- Only 46 percent of all workers are very confident that they will have enough money to take care of basic living expenses when they reach traditional retirement age, and only 28 percent are very confident they will be able to take care of medical expenses.
- Despite believing federal drug benefits will not exist in coming years, only 59 percent of those surveyed cited healthcare costs as a reason they plan to continue working.