More Americans anticipate a slow transition into retirement rather than just exiting the workforce, finds new data released today by Allianz Life.
According to the findings, 47% of Americans believe they will gradually enter retirement, while 38% say they will have a “distinct date” in stopping work and retiring fully. On the other hand, 15% say they don’t see a future where they can retire slowly, or at all.
Allianz Life found that Baby Boomers (58%) are the most likely to consider a phased retirement. Second in line are Gen Xers (53%), followed by Millennials (45%).
Asian American respondents were also the most likely out of any group to want a slow retirement (56%), compared to 49% of Black/African American respondents, 48% of white, and 46% of Hispanic respondents, found Allianz Life.
“In the past, retirement started abruptly on your last day of work but that idea is changing,” said Kelly LaVigne, vice president of Consumer Insights, Allianz Life. “Many Americans are thinking about slowly working less and less as they age. That’s an important change for creating a retirement financial strategy that will affect when you start drawing down on retirement assets and how much you withdraw.”
More Americans want phased retirements
The research underscores the idea that workers are changing how they want to spend their golden years. Past findings show that more Americans are envisioning part-time work in retirement, either because of finances or for pleasure. In the Allianz Life data, 68% of respondents believe people should expect to work later in life in order to have enough money to retire, and another 61% say people should expect that they’ll need to work in retirement to survive.
What’s more, 80% of respondents to the study say working longer or retiring later would help ensure that they could financially support all the things they want to do in life. On a personal level, 63% say they will likely continue working at least part-time in retirement to supplement their income. This is especially true for Millennials (64%) and Gen Xers (64%), compared to Baby Boomers (59%). Hispanic respondents (71%) were more likely than white (64%), Black/African American (61%), and Asian/Asian Americans respondents (60%) to say they will likely continue working at least part-time, according to Allianz Life.
“Some people may want to slowly transition away from full-time work in order to stay busy, but for many Americans it is necessary in order to feel financially confident that your money will last your lifetime,” added LaVigne. “Working longer will put off when you start drawing down on retirement assets. You could also benefit from staying on an employer health plan. A financial professional can help you think through how that shift into retirement will work for you financially and how continuing to work could affect your retirement outcomes.”
SEE ALSO:
- Participants Look Forward to ‘Non-Traditional’ Retirements
- Millennials and Gen Xers Prefer Phased Retirements
- A Third of Younger Workers Have Zero Retirement Savings
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
