When will you retire? A new study conducted by Wells Fargo indicates that it may be much later than you think. Wells Fargo’s survey consisted of 1,500 middle-class Americans, from ages 20 to 80. Here are some interesting, and some depressing, facts from the survey:
- Americans saved only 7% of what they hoped to have for retirement
- Survey respondents had a median savings of $25,000 for retirement, compared to the median savings goal of $350,000
- 30% of respondents in their 60’s had saved less than $25,000 for retirement (where 65 is the traditional retirement in the United States)
- Three-fourths of the respondents stated that they expect to work throughout their retirement
- Twenty five percent of respondents indicated that they would need to work until 80 before being able to retire comfortably
This survey results should ring alarms about how the United States is going to deal with this issue. Some people in their 20s and 30s expect to receive nothing in the form of Social Security benefits to help in their retirement. More elderly people are going to have to continue to work in the later years of their life. How will this affect the work force? Will people be physically and mentally able to work these extra years? How will this affect the younger generation entering the work force? There are many changes ahead of us in the retirement arena.
For additional information in this area, read How Much Retirement Savings Do I Need?, and Americans Are Wise To Change Retirement Expectations And Planning.