One in five Americans believe they will never be able to retire, according to new Axios/Ipsos polling on retirement.
Not surprisingly, financial worries are the main reason for this. Among the 20% who don’t think they’ll ever retire, a decisive majority (70%) say it’s because they can’t or won’t be able to afford to retire, while only 19% of people said they just don’t want to retire.
The research, released July 20, found two in five unretired Americans (40%) say they would prefer to work as long as they can and not fully retire. This is especially true for respondents over the age of 55 who have not retired.
Americans over age 55 who haven’t retired are split on whether they will retire at the time they expected. About one-third of these respondents (36%) say they will retire when they planned, about a quarter (23%) report they will have to retire later than they planned, and 40% aren’t sure if they will retire at the time they expected.
Under half of those age 55+ who aren’t retired (44%) say they have had to change retirement plans due to economic factors out of their control.
Given many respondents financial concerns with retirement, more than half of Americans who haven’t retired (52%) plan to move somewhere with a lower cost of living when they retire.
Not relying on Social Security
The research shows Americans are affording and financing retirement using several different tactics.
Most Americans who aren’t retired (62%) said they expect Social Security will cover less than half of their expenses in retirement. Over one-third of Americans who aren’t retired (37%) say that Social Security will likely cover less than 25% of their expenses, with an additional one in four (24%) thinking that Social Security will cover a quarter to about half of their expenses (24%-49% of expenses).
At the same time, just 37% of people who are retired say that Social Security covers less than half of their expenses.
Nearly one in five retirees (19%) say that Social Security covers a quarter or less of their expenses (less than 25% of expenses), and an additional 18% of retirees report that Social Security covers a quarter to about half of their expenses (25% to 49% of expenses). Just 5% of retirees say that Social Security covers 100% of their expenses.
Outside of Social Security, two-thirds of Americans who aren’t retired (66%) say they plan to rely on retirement accounts, like a 401(k), 403(b) or IRA. Half of Americans currently retired (50%) say they utilize retirement accounts to fund their retirement.
More findings
• Fewer Americans who aren’t retired plan to use a pension, while pensions are more common among those already retired. Three in 10 respondents who aren’t retired (30%) say they will rely on a pension, while more than half of current retirees (54%) say they utilize a pension to fund their retirement.
• About two in five (41%) say they have never talked about saving for retirement with their friends, and 57% say they have never talked to a financial planner about retirement.
• Most Americans feel that the point of working hard is to enjoy retirement and spend time with friends and family. Majorities of retirees say it’s easier to take care of their mental, emotional, and physical health after retirement, while fewer people who aren’t retired agree. Most Americans who are retired (68%) say they feel better than ever now that they’ve retired.
The Axios/Ipsos poll was conducted July 7-9, 2023, by Ipsos and is based on a nationally representative probability sample of 1,238 general population adults age 18 or older. The sample includes an oversample of 210 adults age 55 and over.
SEE ALSO:
• Forced Into Retirement, More Retirees Look to Part-Time Work
• Retirement Could Be A ‘Nightmare’ For Generation X
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
