Survey finds that 82% said they have considered delaying their retirement for financial reasons; 92% worry that they will have to work longer than planned
GUAYNABO, Puerto Rico, Aug. 26, 2024 /PRNewswire-PRWeb/ -- LiveCareer®, a career service dedicated to resumes and cover letters, polled 1,031 U.S.-based workers in June 2024 to explore the workforce's plans and progress toward their retirement goals. The results revealed workers' widespread concerns and anxious feelings of financial unpreparedness about retirement.
According to LiveCareer's Retirement Sentiments Report, 82% of participants say they have considered delaying their retirement due to financial reasons, and 92% worry that they will have to work longer than planned.
The survey also explored workers' fears surrounding retirement. The data shows that 61% of workers fear retirement more than death, and for a large segment of participants (64%), the thought of retiring is scarier than the idea of getting a divorce.
More than half of participants (54%) said that retiring frightens them more than getting fired or falling into poor health (53%). Other worries included becoming a financial burden to loved ones (39%) and not having enough saved for medical emergencies or unexpected costs (39%).
"Our survey reveals that financial stability is a primary concern among participants, with many fearing they won't be able to afford to retire and keep up with the bare essentials like healthcare, or that they might become a financial burden to their loved ones," said Jasmine Escalera, career expert at LiveCareer. "These findings highlight the importance of retirement planning. Workers should take proactive steps to understand their employers' retirement and financial planning services fully. This includes knowing the difference between 401(k) and Roth accounts, understanding company match programs and taking advantage of free financial advice and planning benefits. By doing so, workers can better prepare for retirement's financial and personal impacts before it gets too late."
Retirement Savings: Expectations Versus Savings Reality
The study revealed a significant gap between workers' expectations regarding retirement and their current financial realities. Here is what the data showed:
Retirement age plans
Of the individuals surveyed, 80% of workers stated they plan to retire in their 60s, with 46% aiming to retire in their early 60s (between ages 60 and 65) and 34% planning to retire between the ages of 66 and 70.
Additionally, 10% of people hope to retire before the age of 60 and 9% of respondents plan to retire between the ages of 71-75. Less than .5% say they don't plan to retire.
Projected financial needs
There was a wide range when asked how much money respondents would need for a comfortable retirement, but 86% said they would need somewhere between $100,000 and $750,000.
Here's how the numbers break down:
- 6% predict they will need less than $100,000
- 26% predict they will need $100,001 – $250,000
- 27% predict they will need $250,001 – $500,000
- 23% predict they will need $500,001 – $750,000
- 14% predict they will need $751,000 – $1 million
- 4% predict they will need more than $1 million
Current level of savings
When it comes to savings, however, what people have saved didn't align with their predicted needs. Of the participants surveyed, progress made toward retirement savings includes:
- 3% Less than $10,000
- 27% $10,000 – $50,000
- 24% $50,001 – $100,000
- 24% $100,001 – $200,000
- 14% $200,001 – $500,000
- 5% $500,001 – $1,000,000
- 2% More than $1,000,000
- 1% I haven't saved anything
When asked which issues they face in achieving their retirement savings goals, 82% say inflation has significantly impacted their ability to contribute to retirement savings. The COVID-19 pandemic also made an impact, with 87% reporting that it affected their ability to save for retirement.
Income in retirement
Only 42% of those surveyed say they feel highly confident they are on track to save what they need in retirement. For those not as confident in their ability to retire comfortably, the survey showed that 43% of participants plan on retiring from full-time work but continuing part-time in their field for as long as possible, while 29% plan on retiring from their current profession and taking a part-time job in a different field.
Financial Fears Abound When Thinking About Retirement
When asked to cite their retirement worries, 82% said they have considered delaying their retirement for financial reasons, and 92% are at least somewhat worried that they will have to work longer than they anticipated due to financial constraints.
Other top financial anxieties include:
- Making poor investment decisions and losing retirement funds (52%)
- Feeling disconnected from society (48%)
- Struggling to adapt to a new routine or lifestyle (46%)
- Potential shifts in government benefits (44%)
- Feeling insecure about the stability of their investments (41%)
- Medical expenses (41%)
- Inflation (30%)
When the survey drilled further into participants' worries, 59% cited the rising cost of long-term care as their top concern. Another 45% were nervous about maintaining their desired standard of living in retirement.
Debt Concerns Hampering Retirement Plans
Debt concerns are another factor that may be adding to workers' fears about retirement. The survey showed that 82% have debts that could impact their retirement. Of those in debt, 35% have debts exceeding $100,000.
Here are the types of debt people are contending with:
- 44% have credit card debt
- 41% have car loans
- 39% have medical debt
For detailed insights, access the full survey results at https://www.livecareer.com/resources/retirement-fears or contact Nathan Barber at [email protected].
Methodology
The findings presented were obtained by surveying 1,031 American respondents on June 4 - 5, 2024. Participants were queried about various aspects of retirement. They answered different types of questions, including yes/no, open-ended, scale-based questions where respondents indicated their level of agreement with statements, and multiple-choice where they could select from a list of provided options.
About LiveCareer
LiveCareer is the premier career site empowering job seekers to find their path to professional success. Since 2005, LiveCareer has helped over 10 million workers worldwide by offering information, expert guidance, and support to boost their chances of finding a job in less time. This includes providing job seekers with resume templates to help them build stronger resumes and cover letters. LiveCareer's extensive suite of career resources also includes interview prep tools and original content to help candidates navigate their job search and target their chosen career path. Stay connected with LiveCareer's latest updates on Facebook, Instagram, LinkedIn, and X.
Media Contact
Nathan Barber, LiveCareer, (206) 900-2989, [email protected], https://www.livecareer.com/
SOURCE LiveCareer
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