As Americans shift their expectations around retirement, they’re planning to maintain some income well into their later years—because they have to. A full 8 in 10 people say they plan to work past age 65, or don’t plan to retire at all, according to a recent study conducted by Transamerica.
Half are planning to continue working at least part time and 42% see themselves taking a phased approach toward retirement.
Most are viewing the shift as having to do with health care costs and income concerns, the survey respondents indicated.
“Sixty-somethings and older workers are casting aside long-held societal notions about fully retiring at age 65,” writes Transamerica author Catherine Collinson, who serves as President of the Transamerica Institute® and Transamerica Center for Retirement Studies. “Eighty-two percent either plan to or are already working past age 65 — or they do not plan to retire.”
But the findings do not indicate the 60-something population is becoming more savvy financially or are preparing more than they have previously. Nearly half expect to rely on Social Security as their main income source in retirement and only 29% know a great deal about their benefits, Transamerica finds.
Across all age groups, a third of workers expect their standard of living to fall when they retire, and those over 40 are more likely to hold this belief. A quarter of workers anticipate having to provide financial support for a family member when they are retired.
Transamerica’s survey also points to a commonly held fear among many Americans today: that they will outlive their savings.
“Outliving savings and investments is the most frequently cited retirement fear among workers of all ages (44 percent),” Transamerica reports. “This is followed by “declining health that requires long-term care” and “Social Security will be reduced or cease to exist” (36 percent each).”
Written by Elizabeth Ecker
