The Transamerica Center for Retirement Studies® finds that significant number of Americans plan never to retire, yet are unprepared if the choice is made for them.
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New research released today by the non-profit Transamerica Center for Retirement Studies® (“The Center”) underscores how American workers are largely unprepared for retirement and further, how relatively few have a backup plan in the event they are forced into retirement earlier than planned. The results of the 12th Annual Transamerica Retirement Survey—conducted among 4,080 American workers—found that for many Americans, the foundation of their retirement strategy is simply to not retire or to work considerably longer than the traditional retirement age of 65.
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 of less than $50,000 agree,
- 74 percent of those with a household income between $50,000 and $100,000 agree,
- And, 59 percent of those with a household income over $100,000 agree.
Please read more in the press release.
For the full survey results and for resources about retirement planning, visit www.transamericacenter.org.
About Transamerica Center for Retirement Studies®
The Transamerica Center for Retirement Studies® (“The Center”) is a non-profit, private foundation. The Center is funded by contributions from Transamerica Life Insurance Company (one of AEGON's companies in the United States) and its affiliates and may receive funds from unaffiliated third-parties. For more information about The Center, please refer to www.transamericacenter.org.
