Nationwide: Most Americans Don’t Expect to Retire at Age 65

Many Americans aren’t planning to retire at age 65, and they expect to have more challenges in their post-career years than their parents and grandparents.

That’s according to a the latest Advisory Authority survey from the Nationwide Retirement Institute, cited in a recent BenefitsPro article .? This year, more Americans than ever are turning 65, and pre-retirees (which Nationwide defines as non-retired investors age 55-65) are feeling more apprehensive about retirement than prior generations.? The Nationwide Retirement Institute surveyed 518 advisors and financial professionals and 2,346 investors in January 2024.

The Nationwide survey found that nearly 7 in 10 (67%) pre-retirees anticipate facing more challenges in retirement than their parents and grandparents.? Additionally, 41% said they could continue working in retirement out of necessity to supplement their income.? More than a quarter (27%) said they intended to live below their means to meet their retirement goals.? In fact, 41% of pre-retirees said they’d be avoiding unnecessary purchases over the next 12 months so they could bulk up their retirement savings.

Inflation is a major factor that’s keeping pre-retirees up at night.? Fifty-seven percent of pre-retirees said that inflation presented the most immediate challenge to their retirement portfolios in the next year, and 27% said inflation was keeping them from saving as much as they would like for retirement.? Additionally, pre-retirees are uncertain about the future of Social Security; 43% reported they weren’t counting on Social Security benefits as much as previously expected, and 27% said they planned to receive less in benefits than planned.

Current economic challenges make planning for retirement more difficult than ever.? It’s challenging to perceive a future that includes retirement security with so much uncertainty due to inflation, recessionary worries, and tumultuous geopolitical issues weighing heavily on the minds of older Americans.? As a result, many people are rethinking their vision of retirement, eschewing the dream of travel, pursuing hobbies, and spending more time with grandkids for a more pragmatic point of view that includes the potential of working longer, living more frugally, and retiring much later in life than previous generations.

In times like these, where retirement sentiment is fraught with uncertainty, planning for the future is crucial.? Working with a financial professional can help assuage pre-retirees’ concerns, giving them clarity around their retirement goals and assisting them in planning for factors such as Social Security, long-term care, healthcare, taxes, and generating a steady income in their post-career years.? Employers can help by offering employees access to professional guidance, for example through financial wellness programs or one-on-one planning sessions.? Investing in their financial well-being can help employees conquer uncertainty and plan proactively for retirement by building financial security for the future, leading to a more engaged, and satisfied workforce.