Many consumers are already planning to work longer than they originally anticipated
Are you scared of retirement?
This was one of the questions in LiveCareers recent survey that asked over 1,000 American workers about their thoughts on retirement. The questions ranged from retirement finances, biggest retirement fears, saving for life after work, and more.
One of the biggest findings: over 60% of respondents said that they fear retirement more than death.
Jasmine Escalera, a career expert at LiveCareer, broke down the survey findings for ConsumerAffairs, highlighting exactly what consumers need to know about retirement.
The financial concerns highlighted in the LiveCareer study are major drivers of retirement timing, Escalera said. A staggering 82% of participants have contemplated delaying retirement for financial reasons.
Additionally, 92% of respondents worried they might need to work longer than planned. These figures highlight the profound impact of financial anxieties on retirement planning and timing, emphasizing the need for each worker to develop the right fiscal strategies to ensure a satisfying retirement. These concerns highlight the need for additional financial planning and education, which could, in the long run, help create security when transitioning into retirement.
Are the retirement fears justified?
According to Escalera, based on the findings from the survey, consumers overall fears and apprehension about retirement are completely justified.
One section of the survey asked respondents how much money they think theyd need to be comfortable during retirement, followed up by how much theyve already saved for retirement.
Only 42% of those surveyed report feeling highly confident about their retirement savings, highlighting a sense of financial insecurity among workers, Escalera explained. This concern is also emphasized by the fact that 86% of respondents believe they need between $100,000 and $750,000 for a comfortable retirement. However, a significant majority, 54%, of respondents have less than $100,000 saved.
We also have to consider inflation and debt, which our participants state can impact retirement savings significantly. 82% of respondents state that inflation is a major barrier to retirement savings. The same number, 82% of respondents, believe their debt will impact retirement, with 35% carrying debts exceeding $100,000. This data shows that the fear of being ready for retirement is pervasive and well-founded.
Be proactive about planning
Whether retirement is quickly approaching or a long-term plan, its never too late to start being proactive about planning especially financially. One of the biggest pieces of advice Escalera has, regardless of age, is to take advantage of your companys retirement plan match incentives.
Employees should take full advantage of company match programs and other benefits available through an employer as soon as possible, she said. These incentives offered through a benefits package can help jumpstart your savings.
If you receive a bonus, consider setting aside a portion toward retirement for another way to boost your savings. By being thoughtful about the future and preparing for it, employees can start to calm the nerves associated with retirement.
Planning will set you up for success
For those in the early stages of their career, Escalera recommends starting saving as soon as possible. The earlier you start, the better position youll be in down the road.
For those nearing retirement sooner than later, Escalera encourages employees to meet with a financial advisor to discuss all of the available options, optimize savings and investments, and find the best plan to move forward.
When preparing for retirement, consider various factors beyond just savings, Escalera said. Proper planning involves more than just setting aside money. Workers should take a proactive and strategic approach that includes regularly reviewing and updating their retirement plans to account for life changes, economic conditions, and personal circumstances that might impact retirement planning.
A proactive and strategic approach can also include seeking professional advice or taking a class that helps to navigate the complexities of retirement planning.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-09-05 20:58:51
