Thursday, May 19, 2011

Study: American Workers Unprepared for Retirement

According to a study issued by the Transamerica Center for Retirement Studies, a significant number of Americans plan to never retire, yet are unprepared if the choice is made for them. Specifically, 40% expect to work longer and retire at an older age since the recession began: 39% plan to retire after age 70 or not at all, and 54% plan to work in retirement. As for preparedeness, 70% agree they could work until age 65 and still not have enough money saved to meet their retirement needs.
“With all of life’s uncertainties, planning not to retire is simply not a viable retirement strategy,” says Catherine Collinson, president of the Transamerica Center for Retirement Studies. “Planning to work past age 65 is an important opportunity to continue earning income, save more, and help to alleviate a retirement savings shortfall; however, it’s important that workers be proactive in setting a retirement savings goal, saving and investing for retirement, and having a backup plan if they are forced to retire sooner than expected.”
Among other findings:
  • Of those who plan on working after retirement or age 65, the most commonly cited reasons are out of necessity (44%).
  • 82% do not have, or is 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%).
Source: Transamerica Center for Retirement Studies Press Release (May 17, 2011)

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