Workers are more confident about retirement than they were last year, according to a survey.
The 14th Annual Transamerica Retirement Survey finds that 55% of American workers are “somewhat” or “very confident” about retirement, representing an increase of four percentage points from 2012. However, this is still below the 2007 confidence level of 59%.
Despite this increase in confidence, 43% of baby boomers now expect to work longer and retire later.
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“Retirement confidence is on the rise, but people are still not technically ready for retirement,” says Catherine Collinson, president of the Transamerica Center for Retirement Studies.
Working longer and delaying full retirement is an excellent means of generating income and bridging a retirement savings shortfall, as well as an opportunity to stay active and involved, she adds.
“However, life’s unforeseen circumstances, such as health issues or a job loss, can derail the best of intentions,” Collinson explains. “Retirement readiness requires having a retirement strategy as well as a backup plan if retirement happens sooner than expected.”
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American workers’ views of retirement have changed dramatically from the long-held notions of fully retiring at age 65 with many years of leisure to follow.
Retirement dreams of travelling, spending time with family and friends, and pursuing hobbies are still alive; however, most workers (57%) now plan on working past age 65, and most also plan to continue working at least part-time in retirement (54%).
Most plan to continue working for financial reasons or healthcare benefits (66%), yet three in 10 plan to do so for enjoyment.
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