Is 70 Soon Becoming the New Retirement Age?

April 14, 20178:36 am1477 views

Nearly half of the majority of U.S workers says, they will wait until 70 to retire or won’t retire at all. Is 70 becoming the new retirement age? According to a recent CareerBuilder survey, 30 percent of U.S. workers ages 60 and older, plan to retire at age 70 or older. Another 20 percent, don’t believe they will ever be able to retire.

While delaying retirement can be fueled by a number of reasons, financial motivations typically top the list as mature workers, work to ensure they have a large enough nest egg. But, just how much they’ll need in the bank to enjoy their golden years remains a mystery or moving target for some. One third of the workers aged 60+ (34 percent) say they aren’t sure, how much they’ll need to save in order to retire.

The nationwide survey was conducted by Harris Poll on behalf of CareerBuilder from February 17 to March 10, 2017 among a representative sample of 3,215 full-time, private sector workers across industries in the U.S., of which 556 workers are ages 60+.

“Faced with the expectations of living healthier for longer, older adults may opt to remain in the workforce for longer and defer savings, pensions, and Social Security for older age,” said Rosemary Haefner, chief human resources officer for CareerBuilder. “This increased workforce participation for older adults has implications for retirement policy, health care financing, Social Security and the behaviour of employers and employees alike.”

See: Singapore Secures its Ageing Workforce by Making Changes to the Retirement and Re-employment Act

Asked how much money they think they’ll need to save in order to retire, 42 percent of U.S. workers aged 60+ believe they will need at least $500,000. A quarter (24 percent) believes they’ll need less than $500,000.

  • Less than $500,000: 24 percent
  • $500,000 to less than $1 million: 25 percent
  • $1 million to less than $2 million: 13 percent
  • $2 million to less than $3 million: 3 percent
  • $3 million or more: 1 percent

Are mature employees financially prepared to leave the workforce?

When asked if they’re currently contributing to retirement accounts, more than 1 in 4 (26 percent) workers 55+ said they do not participate in a 401(k), IRA or other retirement plan.

Three out of four workers ages 55+ (74 percent) don’t earn their desired salary, and they’re taking steps to change that. Eight percent took on a second job in 2016 and 12 percent plan to change jobs this year.

Also read: Only 51% Couples in Australia Have Comfortable Level of Retirement Income

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