Data and Research June 10, 2016

Some Participants Plan Never to Retire

It’s a grim but unsurprising truth, and one plan sponsors should contemplate: the less assets an individual has saved for retirement, the likelier they are to plan to stay in the workforce indefinitely. 

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Sixty percent of Americans 50 and older plan to work past age 65, according to a poll of 1,075 people by the Associated Press and NORC Center for Public Affairs. 

Additionally, 40% plan to switch jobs, and 25% have completed education or training to do so. For those 65 and older, 50% plan to change career fields. Twenty-five percent plan to never retire; among those earning less than $50,000, this rises to 33%, while for those earning $100,000 or more, this declines slightly to 20%.

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Twenty-five percent of adults age 50 or older have looked for a job in the past five years, but 60% have found it difficult to find one. In fact, 33% said it has been so difficult that they have given up. Even so, 20% of people between the ages of 65 and 75 are either working or looking for work. Older workers are split on whether their age is an asset or a liability, with 42% saying it is an advantage, 38% saying it is a disadvantage and 19% saying it doesn’t matter.

Older workers also lack confidence in their skills, with only 31% saying they are extremely or very confident they have the necessary skills to compete for jobs. Thirty-eight percent are somewhat confident, 19% are not very confident, and 10% are not at all confident.

The information comes at a time when the size of the older population is growing. Between 2003 and 2013, the number of Americans age 65 or older rose from 35.9 million to 44.7 million. By 2040, the number of people age 65 and older is expected to surge to 82.3 million, with this percentage of the American population rising from 14.1% in 2013 to 21.7% in 2040.

Data and Research June 10, 2016

Many Retirees Not Taking Advantage of Delaying Social Security

Four in 10 Americans age 50 or older plan to take Social Security before full retirement age
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Despite the fact that it can lower their Social Security benefits by as much as 30%, collecting Social Security before their full retirement age is the plan for more than four in 10 Americans age 50 or older, an Associated Press-NORC Center for Public Affairs Research poll found.

For those born between 1943 and 1954, full benefits begin at age 65 or 66, but the average American plans to begin collecting benefits at age 64. If they were to wait, benefits rise 8% every year up to age 70, when benefits max out, yet only 9% plan to begin collecting Social Security at age 70.

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For people age 50 or older, Social Security will be their primary source of income in retirement, with 86% saying they will have Social Security income. More than half have a defined contribution plan, such as a 401(k) or 403(b), or an individual retirement account (IRA).

The Center for Retirement Research at Boston College found that the average retirement age for men is 64 and for women, 62, a report about the poll noted.

The poll also asked people with incomes less than $50,000 if they feel more anxious than secure about the amount of retirement savings they have, and 58% said they feel more anxious. For those with income of $100,000 or more, 40% are worried. The poll also found that 25% of workers older than 50 never plan to retire.

The AP-NORC survey was conducted in March.

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