Over half of U.S. workers ages 60 and older aren’t planning to hang up their hats anytime soon, CareerBuilder revealed in a new report.
Despite economic improvement—resulting in part from a nearly decade-long bull market and recent stimulative tax cuts—data show 57 percent of men and 48 percent of women expect to retire later than they initially thought.
Among those who intend to put off retirement, “four in 10 workers (40 percent) don’t think they’ll be able to retire until 70 or older,” the report found.
“When asked if they’re currently contributing to retirement accounts, roughly one in four workers 55+ (23 percent) said they do not participate in a 401k, IRA or other retirement plan, a rate even higher in younger adults ages 18 to 34 (40 percent).”
In addition to the problem of lagging participation, CareerBuilder suggests that uncertainty about the amount of savings needed may be partially responsible for delaying retirement. Nearly a quarter of workers are unsure how much money is enough.
“Women are much more likely to be unsure of how much to save than men—31 to 17 percent, respectively,” the report indicated.
While the amount required to retire varies widely depending on several factors (investment returns, desired lifestyle, health status, etc.), data found that respondents believe they will need:
- Less than $500,000: 20 percent
- $500,000 to less than $1 million: 31 percent
- $1 million to less than $2 million: 14 percent
- $2 million to less than $3 million: 5 percent
- $3 million or more: 7 percent
The survey, conducted by The Harris Poll on behalf of CareerBuilder, included over 800 full-time, private-sector employees.
“Postponing retirement will make an impact across all of our country’s workforce, along with retirement policy and financial and health care planning,” Rosemary Haefner, chief human resources officer at CareerBuilder, concluded. “With workers staying in their jobs longer, employers are adjusting hiring needs, but also reaping the benefits of the extra skills and mentoring abilities of mature employees.”