Working until you drop is no longer confined to the pages of Victorian novels according to the sobering findings of a new report published recently by
According to a release, the study discovered that nearly one in five (18 percent) working-age Americans expect they will never be able to afford to completely retire, believing that circumstances will require them to work indefinitely. This compares to an international average of around one in eight (12 percent).
For those already in retirement, over two fifths (44 percent) of people in the U.S. said they had not prepared adequately or at all for a comfortable retirement, compared to some 38 percent globally, with almost half (43 percent) of those only realizing they were underprepared after retiring. Around one in eight (12 percent) of those Americans who did not prepare adequately said they would be forced to go back to work to cover their financial shortfall. This compares with the survey average of 14 percent.
However, it's not all doom and gloom.
Action 1: Don't rush into retirement
There is a view among retired people that they might have been too hasty in giving up paid employment. Nearly two-thirds (64 percent) who entered semi-retirement wished that they had stayed in full time employment longer. This regret is largely for positive reasons, with many retired people seeing work as an important means of keeping the body and mind active.
Action 2: Don't rely on one source of retirement income
Current retirees have three different sources of retirement income on average, wisely choosing not to generate all of their income from one place. Spreading their sources of retirement income and associated risks means that not all their eggs are in one basket.
Action 3: Plan your retirement with family in mind
Rather than family ties loosening in future, the family will continue to be a major consideration in retirement planning, and may even grow in importance for the next generation. While many people (40 percent) aspire to travel extensively during their retirement, nearly half (49 percent) of current workers expect to have some financial responsibilities towards others even when they are themselves retired. This includes on-going financial responsibilities for their adult children as well as supporting frail elderly parents.
Action 4: Be realistic about your retirement outgoings
Many working people assume that their income needs will fall once they enter retirement. Yet 52 percent of people in retirement have seen no reduction in their outgoings, and 17 percent have seen their outgoings increase. Although people are familiar with the concept of increasing life expectancy, the consequent increase in later life medical and nursing care costs may not be well understood as people are still not doing enough to prepare themselves for these potential costs.
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