There’s good news and bad news. We’re expecting to live longer – but our retirement years might not bring the comfortable lifestyle we’d hoped for.
A new study shows that while the median age that people expect to live to is 90 – 14% believe they will make at least 100 – just 18% are confident that they will enjoy the good life in their retirement years.
The findings are highlighted in a study by the Transamerica Center for Retirement Studies which shows that respondents hope to enjoy a lifestyle of travel, spending time with family and friends and pursuing hobbies.
But workers will have to make some smarter investments if they want to enjoy their senior years without financial worries.
"Today's workers are expecting to live long lives and, in doing so, they are disrupting retirement as we once knew it. Many are envisioning retirement as a new chapter in life that involves continued work but with more free time to pursue personal interests," said Catherine Collinson, president of TCRS. "The big question is whether their vision is wishful thinking or within their reach."
More than half of workers (53%) expect to retire after age 65 or do not plan to retire and 56% plan to continue working at least part-time in retirement. Among them, 83% cite financial-related reasons for doing so.
Almost four in five workers (79%) believe that their generation will have a much harder time achieving financial security in retirement compared to their parents' generation.
The study also shows that many workers have dipped into their retirement savings, which are often not adequate in the first place.
Collinson said that while working well into retirement years may be a solution for some, those employment opportunities are not guaranteed.
"Many workers are not saving enough to amass the financial resources required to support their vision of retirement, while others are at risk of poverty," she warned.
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