More Americans Anticipate Retiring Before Age 60
Amid reports of millions of workers who question whether they’ll ever have the means to retire, a growing number of Americans are aiming to clock out for good well before traditional retirement age.
On average, employees expect to hang up their hats two years sooner than they did five years ago—at age 62 as opposed to 64—with another four in 10 intending to retire before age 60.
“There is greater optimism about retirement and people’s ability to retire sooner rather than later, which may be attributed to the growth in the financial markets and a spike in Americans’ retirement savings during the past five years,” Tom Foster, national spokesperson for MassMutual‘s Workplace Solutions unit, said regarding this year’s MassMutual State of the American Family Study.
Compared to 2013 data, researchers noted an 8 percentage point uptick in the number of workers who plan to retire earlier than 60, and an 8 percentage point dip in the number respondents who believe they’ll work past 65.
“However, many Americans may have a false sense of security when it comes to being ready to retire,” Foster added.
It’s nearly impossible to gauge one’s retirement readiness without first calculating how much money they’ll need before exiting the workforce. Yet, fewer people today have “done the math” compared to five years ago.
In 2013, 61 percent of survey respondents had calculated how much is necessary to retire comfortably. This year only 56 percent could say the same.
Confidence in having enough savings to last throughout retirement has fallen, too. Thirty-five percent of Americans surveyed this year said they worry about running out of money compared to 33 percent in 2013.
So, let’s get this straight. Without a clue how much they’ll need to save and in fear of not having saved enough, a bunch of people are going to retire early? Huh?
MassMutual suggests overall improvement in America’s financial picture may be to blame for workers’ high hopes.
In the past five years, the Dow Jones Industrial Average has shot way up, unemployment has gone way down and average 401k balances have almost doubled, its report pointed out.
Jessica Claeys is an editor, writer, and graphic designer, who has been creating both print and digital marketing and communications content for 10+ years.
Jessa Claeys is a licensed insurance producer in the state of Colorado and an insurance editor for Bankrate. She currently covers auto, home and life insurance with the goal of helping others secure a healthy financial future. Jessa has over a decade of experience writing, editing and leading teams of content creators. Her work has been published by several insurance, personal finance and investment-focused publications, including BiggerPockets, 401(k) Specialist, BP Wealth and more.
