New research found one in eight U.S. adults (13%) over the age of 55 who expect to retire in the future are planning on delaying their retirement due to the Covid-19 pandemic.
When asked what age they plan to retire, 39% of the U.S. adults over 55 reported the range of 65-69 while 18% reported 70-79.
The research, conducted by YouGov on behalf of Smart also found that half mentioned being able to afford healthcare costs (e.g., paying for medication, medical appointments or procedures, etc.) as a concern regarding their finances during retirement.
“COVID-19 has impacted our lives today as well as our futures, and this survey confirms that these shifts are changing the nature of retirement fast,” Jodan Ledford, CEO of Smart USA, said in a statement. “We know that people are rightfully concerned about their retirement income and are encouraged by the U.S. government’s moves with the SECURE Act to widen access to retirement vehicles for the American public as well as its focus on retirement income generation.”
The survey
Nearly half (42%) of people aged 55-plus think of retirement as an event with several stages, a statistic backed up with people having very different expectations for when they will retire. 34% expect to continue to work after retirement age.
Looking at the U.S. adults aged 55-plus who expect to retire in the future:
- 16% say they will or did first access their retirement savings between 60-64
- 39% say they will or did first access their retirement savings between 65-69
- 16% say they will or did first access their retirement savings between 70-74
Smart research suggests people aged 55-plus want control and flexibility from their retirement options:
- 36% would like to receive advice on how much they can safely withdraw each month without running out of money
- 38% want to have the ability to change their income if their financial needs change
- 19% would like to receive a guaranteed income or annuity
Although 38% of US adults aged 55-plus say they want to manage their retirement finances themselves without assistance, 43% would like help with managing their retirement finances, and 21% don’t understand their options around finance at retirement.
However, 42% of respondents over the age of 55 say they have never received any advice on finances in retirement. Furthermore, one-third of respondents say they would like to receive advice from their retirement plan provider, but only 9% cite their plan provider as one of their most useful sources of advice.
Participants value clear communications and online tools from their retirement plan providers. 43% prioritized receiving clear, simple communications about their retirement savings. Online tools are important, both for checking account balances (42%) and accessing income (40%).
Worryingly, 78% of all U.S. adults aged 55-plus have concerns around finance in retirement.