Dive Brief:
- A new CareerBuilder survey shows that 30% of workers 60 and over expect to remain in the workforce until 70 and beyond. About 20% don't think they'll ever be able to retire. Harris Poll surveyed 3,215 full-time, private sector U.S. workers on behalf of CareerBuilder. Of the respondents, 556 are 60 and older.
- When asked how much they’ll need to save to retire, 42% of the respondents 60 and over said at least $500,000. Another 24% said they would need less than that amount. A third of those surveyed (34%) said they’re unsure about how much money they should be saving for retirement.
- The survey also showed that 26% of survey respondents aren’t enrolled in a retirement savings program, such as a 401k, IRA or other plan.
Dive Insight:
Older workers are remaining in the workforce beyond retirement age for various reasons, including the need to supplement their incomes, stay physically and mentally active, start a business or pursue a new career. The troubling news is that as many as 26% of workers 55 and older aren’t enrolled in a retirement savings program.
Workers 55 and older experienced first-hand the transition in employee pensions from defined benefits plans to defined contribution plans. The fact that only one-in-four workers in this age group are enrolled in a retirement savings plan shows that more financial education is needed. Studies reveal, for example, that millennials are more savvy about saving for retirement than previous generations.
Congressional lawmakers and individual states have introduced legislation offering retirement savings programs for workers without employer-sponsored plans. Lawmakers and the states disagree on which legislation is best for employers and workers, but whichever plans are enacted could get more workers into savings plans.
