Many expect living standards to decline in retirement
By Lisa Barron
One in three American workers expects their standard of living to decline when they retire, according to a survey commissioned by the Transamerica Center for Retirement Studies.
The survey of 4,143 full- and part-time workers found that a slightly larger proportion, 41 percent, think their living standards will stay about the same, while 17 percent expects their standard of living to increase, and 9 percent are not sure what will happen.
For those feeling pessimistic, the center said there is still time to turn things around.
“As the economy continues its recovery, workers can further improve their chances of achieving a comfortable retirement by taking steps today to update their retirement savings goals and finding a road map to achieve those goals,” Transamerica Center President Catherine Collinson said.
“Most people plan to work longer and retire at an older age. Yet with a solid strategy, many may be able to retire sooner, transition with greater flexibility and on their own terms.”
The study showed that about 65 percent of baby boomers, those born between 1945 and 1964, plan to continue working after age 65 or don’t plan to retire in order to keep receiving income and health benefits.
Among those boomers wanting to work longer, 65 percent say they are trying to stay healthy, 41 percent are keeping their job skills updated, 26 percent have a backup plan for retirement income if they are forced to leave the workforce, 16 percent are networking, and 14 percent are exploring the job market for possible opportunities.
As for other age groups, 54 percent of Generation X, born 1965-1978, plan to keep working after age 65 or don’t plan to retire at all, while that is true for 40 percent of millennials, born 1979-1966, the survey found.
Originally published on BenefitsPro.com