The expected retirement age among affluent pre-retirees today has gone up to 68 — eight years higher than the actual retirement age reported by those already in retirement, according to Investor Retirement Income Trends, a published Cogent Reports study by Market Strategies International.
There are multiple factors driving this delay including the anticipated sources of retirement income, and an overall lack of confidence among pre-retirees (non-retirees 55 years or older) in their ability to meet all of their retirement income needs.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to the report, only 28% of pre-retirees are highly confident in their ability to generate a suitable income in retirement to cover all of their needs. By contrast, nearly half (48%) of retirees are confident in their ability to do so.
Julia Johnston-Ketterer, senior director and author of the report, said: "We see over one-third of all affluent Americans expressing serious concerns about either outliving their money or not being able to handle unexpected costs. These legitimate fears, coupled with increasing longevity, are pushing even affluent Americans to remain in the workforce longer."
Other important factors at play — and the major differences between retirees and pre-retirees — are the anticipated sources of retirement income. For example, pre-retirees are three times more likely to rank a 401(k) as their number one source of anticipated retirement income (25% vs. 7%). Conversely, retirees are almost twice as likely to cite a pension as their number one retirement income source (39% vs. 22%).
Johnston-Ketterer added: "The more Americans become dependent on funding their retirement income through 401(k) savings, the more likely they are to remain in the workforce until they feel confident they have adequately funded those accounts. But it’s a moving target, and without the guaranteed lifetime income that a pension provides, investors are increasingly concerned about coming up short."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
