Data & Research March 31, 2017

Millennial Expectations of Retirement Greater than Older Generations

But older generations expect a different experience in retirement for Millennials. 
Reported by

When it comes to retirement, LIMRA Secure Retirement Institute research shows expectations vary greatly depending on consumers’ generations.

Fifty-eight percent of Millennials have high expectations of retirement, while only 39% of Gen X and 43% of non-retired Baby Boomers feel the same way.

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The study reveals younger Baby Boomers and older Baby Boomers (ages 61 to 70) have different perceptions about their retirement. Young Baby Boomers are less confident in retirement prospects than older Baby Boomers. Less than half (44%) of young Baby Boomers are confident they will be able to live their desired retirement lifestyle versus 61% of older Baby Boomers.

The Institute’s report highlights that Millennial men have the highest expectations for their retirement lifestyle and are confident in achieving them. In comparison, Gen X women are the least likely to be confident in achieving their desired retirement lifestyles (6%).

When it comes to saving and planning for retirement, six in 10 non-retired consumers say saving for retirement is a top priority. In general, men are more likely than women to make retirement saving a priority. Two-thirds of men agree saving for retirement is important compared with just 51% of women. Millennial men are the most engaged with their retirement saving—71% of Millennial men say that saving for retirement is a top priority and 62% are very involved in monitoring or managing their retirement.

Most consumers anticipate significant changes in retirement for future generations. Eighty-three percent of retirees believe the retirement experience of their generation will look significantly different from those of future generations. Non-retirees agree: seven in 10 believe their retirement will look significantly different from the retirement of current retirees. While most believe these changes will be negative, consumers are reporting some positives as well. Among some of the potential upsides mentioned are more time for younger generations to plan, better planning tools and the ability of technology to improve the quality of life in retirement.

These results are based on a national survey of 1,686 U.S. adults completed in January 2017. LIMRA members can read the report on LIMRA.com.
Data & Research March 31, 2017

Is 70 the New 65?

Nearly one-third of those 60 and older are planning to stay in the workforce until age 70.
Reported by

Is 70 becoming the new 65? CareerBuilder asked this question in a survey of those age 60 and older. Thirty percent said they plan to retire at age 70 or even older, and 20% don’t expect to ever retire.

While not having enough money to retire is the reason why they are planning to delay retirement, 34% of those age 60 and older are unsure how much they will need to retire.

When asked to guess how much they will need to retire, 24% think it is less than $500,000. However, 42% think it is more than $500,000. This breaks down to 25% saying $500,000 to less than$1 million, 13% saying $1 million to less than $2 million, 3% saying $2 million to less than $3 million, and a mere 1% saying $3 million or more.

Given these figures, it might be surprising that 26% of American workers older than 55 are not participating in their 401(k), individual retirement account (IRA) or other retirement plan.

Seventy-four percent of workers older than 55 said they are not earning what they would like to earn. Twelve percent plan to change jobs, and 8% took on a second job in 2016.

“Faced with the expectations of living healthier for longer, older adults may opt to remain in the workforce for longer and defer savings, pensions and Social Security for older age,” says Rosemary Haefner, chief human resources officer for Career Builder. “This increased workforce participation for older adults has implications for retirement policy, health care financing, Social Security and the behavior of employers and employees alike.”

Harris Poll conducted the survey for Career Builder among 3,215 adults between February 17 and March 10; 556 of those respondents were people age 60 and older.

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