Many American households aren’t adequately prepared for retirement, according to a report.
The Federal Reserve Board’s Report on the Economic Well-being of U.S. Households finds that 31% of non-retired respondents say they have no retirement savings or pension, including 19% of those ages 55 to 64.
Additionally, almost half of adults are not actively thinking about financial planning for retirement, with 24% saying they have given only a little thought to financial planning for their retirement and another 25% saying they have done no planning at all.
Of those who have given at least some thought to retirement planning and plan to retire at some point, 25% didn’t know how they will pay their expenses in retirement.
The Great Recession pushed back the planned date of retirement for two-fifths of those age 45 and over who had not yet retired, and 15% of those who had retired since 2008 say they retired earlier than planned due to the recession.
Among those ages 55 to 64 who had not yet retired, only 18% plan to follow the traditional retirement model of working full time until a set date and then stop working altogether, while 24% expected to keep working as long as possible, 18% expected to retire and then work a part-time job, and 9% expected to retire and then become self-employed.
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