A new study reaffirms a growing trend that most working Americans of all ages expect to work past the common retirement age of 65, and nearly half fear that they won’t be able to retire comfortably.
Even so, large numbers of Americans aren’t talking to advisors about their financial future, the survey says.
In the 2015 Planning & Progress Media Study published by Northwestern Mutual, 43% of the 2,010 American adults surveyed said they expected to work past the age of 65, including 66% of Generation Xers. Of that 43%, a clear majority (62%) said they expected to work past age 65 out of necessity, with Generation Xers being the most pessimistic of all; 82% of those respondents said they expected to have to work into their late 60s.
Even with all that fear, or perhaps as a contributing factor to it, 43% of all respondents said they haven’t spoken to anyone about their retirement plans, while a plurality of respondents (36%) said “I don’t know” when asked about what percentage of their current income they think they will need in retirement. Once again, Generation Xers were the group least likely to have sought counsel from an advisor, with 47% saying they hadn’t spoken with anyone about retirement planning, even though a number of financial pressures are more prevalent among the demographic, relative to the other age groups.
“While the lack of discipline is clearly a substantial factor, the financial pressures impacting Gen X may also be a function of life stage,” said the report that accompanied the study. “A significant portion of this segment is squarely in the “sandwich generation” — more than 4 in 10 (44%) live with children under 18 and over a quarter have a parent or other relative in the household.”
In spite of this gap, the number of current retirees who reported being happy in retirement correlated to those who had a proactive savings plan. Those who had “highly disciplined” or “disciplined” savings plans reported a 90% happiness rate in retirement, compared to just 74% of those who had an “informal” game plan for retiring.
The numbers were similar for those still working, though younger Americans are more pessimistic on the whole, with 76% of “highly disciplined” and 74% of “disciplined” savers agreeing with the statement “I will be happy in retirement.” On the contrast, just 64% of workers with “informal” savings plans felt the same.
When it comes to investment choices, Americans of all age groups choose to play it safe. Baby Boomers, those closest to actually cashing on retirement savings, were the most risk-averse working age group, with 83% of respondents saying they tend to be more conservative in their retirement investments. By contrast, 74% of Generation Xers and 71% of Millennials felt the same way.
Even so, large numbers of Americans aren’t talking to advisors about their financial future, the survey says.
In the 2015 Planning & Progress Media Study published by Northwestern Mutual, 43% of the 2,010 American adults surveyed said they expected to work past the age of 65, including 66% of Generation Xers. Of that 43%, a clear majority (62%) said they expected to work past age 65 out of necessity, with Generation Xers being the most pessimistic of all; 82% of those respondents said they expected to have to work into their late 60s.
Even with all that fear, or perhaps as a contributing factor to it, 43% of all respondents said they haven’t spoken to anyone about their retirement plans, while a plurality of respondents (36%) said “I don’t know” when asked about what percentage of their current income they think they will need in retirement. Once again, Generation Xers were the group least likely to have sought counsel from an advisor, with 47% saying they hadn’t spoken with anyone about retirement planning, even though a number of financial pressures are more prevalent among the demographic, relative to the other age groups.
“While the lack of discipline is clearly a substantial factor, the financial pressures impacting Gen X may also be a function of life stage,” said the report that accompanied the study. “A significant portion of this segment is squarely in the “sandwich generation” — more than 4 in 10 (44%) live with children under 18 and over a quarter have a parent or other relative in the household.”
In spite of this gap, the number of current retirees who reported being happy in retirement correlated to those who had a proactive savings plan. Those who had “highly disciplined” or “disciplined” savings plans reported a 90% happiness rate in retirement, compared to just 74% of those who had an “informal” game plan for retiring.
The numbers were similar for those still working, though younger Americans are more pessimistic on the whole, with 76% of “highly disciplined” and 74% of “disciplined” savers agreeing with the statement “I will be happy in retirement.” On the contrast, just 64% of workers with “informal” savings plans felt the same.
When it comes to investment choices, Americans of all age groups choose to play it safe. Baby Boomers, those closest to actually cashing on retirement savings, were the most risk-averse working age group, with 83% of respondents saying they tend to be more conservative in their retirement investments. By contrast, 74% of Generation Xers and 71% of Millennials felt the same way.
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