Money in the Middle

Sandwich Generation Talking About Money Up, Down and Across Generations

Boomers See a Longer Road to Retirement: Retirement Reset Takes Hold

with one comment

 The last couple weeks may have boosted our spirits about the economy, but we’re not feeling very good about the road to retirement.  

A Longer Road to Retirement

A Longer Road to Retirement

 

To borrow from the Beatles — It’s going to be a long and winding roadMore of us plan to work longer and to supplement our income in retirement by working –for pay.  

 

 That’s the word from the Annual Retirement Confidence Survey released by the Employee Benefit Research Institute (EBRI).

 

The only surprise in the news is how many of us admit that we are changing what retirement will look like.  Retirement Reset, which I’ve written about before, is taking hold, especially among baby boomers.  Forget Plan B and Plan C — We’re putting New Plan A in place.

 

Here are the highlights of the survey so you can see how you stack up:

  • Delaying Retirement:  28% of workers say that in the last year they have changed the age at which they expect to retire.  Of those, 89% postponed retirement to increase their financial security.  The mid-point for retirement is now 65, with 21% planning to push on into their 70s.

 

  • Working in Retirement: 72% plan on continuing to work after they retire; that’s up from 66% in 2007. But planning and reality often clash.  Among retirees, only 34% surveyed report they worked for pay.  I suspect job availability and health conditions contribute to that disparity. Even the best laid plans are often derailed for reasons out of our control.

 

  • Cutting Back, Working More:  workers who have lost confidence in their ability to have a secure retirement are reducing their expenses (81%), changing the way they invest their money (43%), working more hours or a second job (38%), saving more money (25%) and seeking advice of a financial professional (25%)

 

  • Little planning for retirement:  Many still don’t know how much they need to save for retirement.  Only 44% report they have tried to calculate how much they need to save; 44% simply guess.

 

  • Retirement contribution/savings:  Most have not changed their retirement savings plan (72%).  Eighteen percent say they increased their contribution and 11% decreased it.

 

The good news is that more people are facing the reality of the situation and preparing to take the action to build a secure retirement. True, it’s not where we hoped to be – or maybe even want to be, but it is a good sign that we are setting aside the highly-inflated plans of past – and facing retirement reality. 

 

Do you have a new Plan A?

Advertisements

Written by Laura Rossman

April 14, 2009 at 4:29 pm

One Response

Subscribe to comments with RSS.

  1. If only people would save a dollar day starting at age twenty…Might have a nice little nest egg…So many people are unprepared, or had to use savings for other things…..At thirty the day of 70 is a long time away…However time gets faster daily…and one day you have arrived…Don’t dwell on this…just plan for it.

    carol stanley

    April 15, 2009 at 1:24 pm


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: