Is 70 becoming the new retirement age? According to a recent CareerBuilder survey, 30% of U.S. workers ages 60 and older plan to retire at age 70 or older. Another 20% don’t believe they will ever be able to retire.
While delaying retirement can be fueled by a number of reasons, financial motivations typically top the list as mature workers work to ensure they have a large enough nest egg. But, just how much they’ll need in the bank to enjoy their golden years remains a mystery or moving target for some. One third of workers ages 60+ (34%) say they aren’t sure how much they’ll need to save in order to retire.
The nationwide survey was conducted by Harris Poll on behalf of CareerBuilder from February 17 to March 10, 2017 among a representative sample of 3,215 full-time, private sector workers across industries in the U.S., of which 556 workers are ages 60+.
“Faced with the expectations of living healthier for longer, older adults may opt to remain in the workforce for longer and defer savings, pensions, and Social Security for older age,” said Rosemary Haefner, chief human resources officer for CareerBuilder. “This increased workforce participation for older adults has implications for retirement policy, health care financing, Social Security and the behavior of employers and employees alike.”
Asked how much money they think they’ll need to save in order to retire, 42% of U.S. workers ages 60+ believe they will need at least $500,000. A quarter (24%) believe they’ll need less than $500,000.
- Less than $500,000: 24%
- $500,000 to less than $1 million: 25%
- $1 million to less than $2 million: 13%
- $2 million to less than $3 million: 3%
- $3 million or more: 1%
Are Mature Employees Financially Prepared to Leave the Workforce?
When asked if they’re currently contributing to retirement accounts, more than one in four (26%) workers 55+ said they do not participate in a 401(k), IRA, or other retirement plan.
Three out of four workers ages 55+ (74 %) don’t earn their desired salary, and they’re taking steps to change that. Eight percent took on a second job in 2016, and 12% plan to change jobs this year.
This survey was conducted online within the U.S. by Harris Poll on behalf of CareerBuilder among 3,215 employees ages 18 and over (employed full-time, not self-employed, nongovernment) between February 17 to March 10, 2017, of which 556 workers are ages 60+. With a pure probability sample of 556, one could say with a 95 % probability that the overall results have a sampling error of +/- 4.2 percentage points, respectively.