LiveCareer, a career service dedicated to resumes and cover letters, has polled 1,031 U.S. workers to explore the workforce’s plans and progress toward their retirement goals. The results reveal workers’ widespread concerns and anxious feelings of financial unpreparedness about retirement.
According to LiveCareer’s Retirment Sentiments Report, 82% of participants say they have considered delaying their retirement due to financial reasons, and 92% worry that they will have to work longer than planned. The survey also explores workers’ fears surrounding retirement. The data shows that 61% of workers fear retirement more than death, and for a large segment of participants (64%), the thought of retirement is scarier than the thought of getting a divorce.
More than half of participants (54%) say that retirement frightens them more than getting fired or falling into poor health (53%). Other worries include becoming a financial burden on loved ones (39%) and not having enough saved for medical emergencies or unexpected costs (39%).
“Our survey reveals that financial stability is a primary concern among participants, with many fearing that they won’t be able to afford to retire and keep up with the bare essentials like healthcare, or that they might become a financial burden to their loved ones,” says Jasmine Escalera, career expert at LiveCareer. “These findings highlight the importance of retirement planning. Workers should take proactive steps to understand their employers’ retirement and financial planning services fully. This includes knowing the difference between 401(k) and Roth accounts, understanding company match programs, and taking advantage of free financial advice and planning benefits. By doing so, workers can better prepare for retirement’s financial and personal impacts before it gets too late.”
The study reveals a significant gap between workers’ expectations regarding retirement and their current financial realities. For example, 80% of workers state they plan to retire in their 60s, with 46% aiming to retire in their early 60s and 34% planning to retirement between the ages of 66 and 70.
Additionally, 10% of people hope to retire before 60 and 9% of respondents plan to retire between the ages of 71 and 75. Less than 1% say they don’t plan to retire.
When asked how much money respondents would need for a comfortable retirement, 86% say they would need somewhere between $100,000 and $750,000. The largest cohort (27%) predicts they will need between $250,001 and $500,000 to retire comfortably.
When it comes to savings, however, what people have saved doesn’t align with their predicted needs. Only 14% have saved between $200,001 and $500,000, while 3% have saved less than $10,000, 27% have saved between $10,000 and $50,000, and 24% have saved between $50,001 and $100,000. When asked which issues they face in achieving their retirement savings goals, 82% say inflation has significantly impacted their ability to contribute to retirement savings. The COVID-19 pandemic also made an impact, with 87% saying it impacted their ability to save for retirement.
Only 42% say they feel highly confident they are on track to save what they need in retirement. For those not confident in their ability to retire comfortably, the survey shows that 43% of participants plan to retire from full-time work but continue working part-time in their field for as long as possible, while 29% plan to retire from their current position and take a part-time job in a different field.
