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Sun Life UnretirementSM Index Results
The Sun Life Financial UnretirementSM Index includes surprising results as the median age of Americans rises and more Baby Boomers prepare for important decisions, like when to take Social Security and when to exit the workplace. At age 67, Americans can currently receive full Social Security benefits. While availability of government benefits has traditionally driven many Americans' retirement decisions, the UnretirementSM Index shows this standard is evolving.
When do Americans plan to retire?
Almost half (48%) of America's workers plan to work past the age of 67.
(See Graph 1 below. Note: Click on the graph to see a larger view.)
While the average retirement age has gradually increased, the study found that younger generations are more often planning to retire at age 67 than their older counterparts. Fifty-eight percent of workers age 30-39 believe they will be retired at 67, compared to only 45 percent of those aged 60 and over.
Why are Americans working later in life?
More than 77 percent of those planning to work beyond age 67 will do so to earn enough money to live well. Finances, however, are not the only driver to continue working past age 67. The most cited reason for continuing to work was "to stay mentally engaged."
The study also found:
(See Graph 2 below. Note: Click on the graph to see a larger view.)
- The number one reason (83 percent) people don't plan to retire at age 67 is to stay mentally engaged.
- Four out of the five reasons cited for continuing to work past age 67 are not financial.
- Among those with total net assets of less than $100,000, 81 percent said they will continue to work to earn enough money to live well, the same percentage who want to keep working to stay mentally engaged.
- Among those with total net assets of between $100,000 and $500,000, 72 percent will continue to work because they love their careers and 66 percent said they were not ready to end their careers.
What are the factors influencing retirement?
The UnretirementSM Index measures consumer opinions toward five factors that impact retirement, including the economy, personal finance, health, government benefits and employer benefits.
The economy
Americans have less confidence in factors influencing their retirement when they have less control over those factors, and showed lower confidence in the economy than any other factor measured by the Index.
Personal finances
Only 46 percent of all workers are very confident that they will have enough money to take care of basic living expenses when they reach traditional retirement age. Even fewer, 28 percent, are very confident they will be able to take care of medical expenses.
Healthcare Costs
Despite believing federal drug benefits will not exist in coming years, only 59 percent of those surveyed cited healthcare costs as a reason they plan to continue working.
Government and Employee Benefits
Younger generations have little confidence that government benefit programs, like Social Security and Medicare, will be available when they retire. Sixty-three percent of workers age 30-39 don't believe that Social Security will be available. This generation also cited employer healthcare benefits as a reason to work past age 67. |
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To view more
UnretirementSM Index findings, read the
press release or read
the benchmark study.
Almost half of America's workers plan to work past the age of 67
Four out of the five reasons cited for continuing to work past age 67 are not financial
Americans have lower confidence in the economy than any other factor measured by the UnretirementSM Index
Younger generations have little confidence that government benefit programs like Social Security and Medicare will be available when they retire
American workers are much more likely to cut back on spending and reduce debt to improve their retirement prospects rather than seek to increase their income or change their investment mix |
