Dive Brief:
- Plagued by the rising cost of living, 35% of U.S. workers said they have pushed out their planned retirement age in just the past three years, according to survey results published Friday by resume builder MyPerfectResume.
- Of the 1,000 U.S. workers surveyed in May, 14% expect to retire at age 70 or older, and 14% don’t expect to fully retire at all.
- “The results show that retirement challenges are connected to workers’ immediate financial obligations. Money that could potentially be directed toward retirement accounts may instead be needed for housing, healthcare, debt payments, family support, and everyday expenses,” wrote Jasmine Escalera, a career expert.
Dive Insight:
Workers’ reasons for delaying retirement included the cost of living, not earning enough, not having enough savings, healthcare and housing costs, debt, economic uncertainty and supporting family members.
Overall, 51% said they’re behind or haven’t yet started saving for retirement, while 49% said they’re on track or ahead of where they need to be.
Likewise, a recent Zety report found that among Generation X workers, 19% don’t expect to ever fully retire.
“Workers can’t always solve a retirement savings shortfall by cutting expenses, especially when essential costs continue to consume a large portion of their paychecks,” Escalera wrote. “But the longer workers go without saving enough, the more difficult it can become to close the gap.”
As employees look to shore up their finances for retirement, they may consider whether a job change could provide better pay, benefits and financial stability, Escalera said.
A recent Bank of America report found that “employers are underestimating the day-to-day financial struggles of their workforce.” Nearly a third of U.S. employees surveyed said they wanted their companies to offer financial advisory services, per the report, which noted that in a competitive labor market, providing financial planning assistance can aid in retention.
