Data & Research April 24, 2007
Many Adults Believe They Will be Unable to Retire
Nearly one in five adults expects to work until they die, and perhaps with good reason, based on their savings rates.
Reported by Fred Schneyer
A survey by Bankrate Inc. reported that some 21% of those between 35 and 64 say they’ll be working forever, while only 9% of 25-to-35-year-olds expect to work permanently and 19% of the youngest age group, 18 to 24 year olds, sees work as a forever arrangement.
Younger individuals were more likely to plan on an early exit; when asked “What is your target date for retiring?” 27% of all respondents planned on quitting in their 50s, while 38% of those between 18 and 34 said the same.
Savings Rates
Meanwhile, 28% of those surveyed save less than 5% of their gross annual pay, including 16% of Americans who are not saving away anything.
Nearly half (46%) of workers between the ages of 25 and 34 save more than 11% of their salaries, with 15% of this group setting aside more than 15%. Among the youngest individuals (18 to 24 years old), 4% hit the high mark by saving 15% and a respectable 12% stashes 11% to 15% of pay.
Roughly three in ten of those earning $20,000 to $29,900 say they save 11% or more of their income annually. An additional 27% of that group saves 5% to 10% of pay. Nineteen percent of those earning less than 30,000 save nothing.
They might not be saving enough but, even so, optimism about life in retirement remains high among many respondents. Six out of 10 Americans “never worry” or worry “not very much” about outliving their retirement savings.
The national random-digit-dialed phone study of 687 adults 18 or older was conducted for Bankrate by GfK Roper Public Affairs & Media. The surveys were conducted from March 29 through April 1, 2007.