Nearly Half of U.S. Workers Financially Ill-Prepared for Retirement
Nearly half (45 percent) of the U.S. workforce does not believe it will have enough money set aside for a comfortable retirement. This according to the latest national Hudson retirement survey, which also finds that three-fourths (74 percent) of U.S. workers plan to work at least part-time during their retirement years. Forty-one percent of workers plan to retire before they reach the age of 65.
Though 47 percent of employees believe that their company does a good or excellent job educating its workforce about retirement planning and benefits, a nearly equal percentage rate their organizations as fair or poor. Individuals in higher income brackets give more complimentary appraisals.
Nationally, workers do not expect company pensions and Social Security to provide significant retirement income. Half (52 percent) report that personal savings will provide the biggest share of their income after they stop working, while only 20 percent expect company pensions to do so. Twenty-one percent of workers expect social security to comprise the biggest chunk of their retirement income.
"As companies cut back on traditional pensions and healthcare coverage for retirees, it is clear that the workforce will have to turn to their own savings and/or keep working to sustain themselves during retirement," says Jeff Anderson, senior vice president of Hudson, North America. "As individuals stay in the workforce longer -- either by choice or necessity – organizations would be well-served by creating programs and training that recognize the value of older workers."
A third (31 percent) of workers in the age group of 50-64, who are fast approaching traditional retirement age, anticipate that Social Security will provide the biggest income contribution, although a plurality (40 percent)
expect personal savings to do so. However, the younger workforce (18-29) is no longer taking Social Security for granted. Only 14 percent expect it to provide the biggest share of their retirement income. Workers under 40 are also more likely to predict they will not work during their retirement years than those 40 and older.
The Hudson retirement survey is based on a national poll of 2,170 U.S. workers and was compiled by Rasmussen Reports, LLC, an independent research firm.