Wes Thompson
Wes Thompson, President of Sun Life Financial U.S., comments on workers' changing attitudes toward Social Security, its role in retirement planning and new Unretirement Index data that shows 48% of American workers would opt out of the Social Security system if given the choice.

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New UnretirementSM Index Results
New findings of the UnretirementSM Index are the first to measure how American attitudes and expectations of retirement have changed since last fall. Sun Life's ongoing research revealed that the current economic climate has adversely impacted the American workforce's attitudes toward retirement and forced many to change their retirement plans.

Almost half of Americans would opt out of Social Security System
(See Graph 1 below. Note: Click on the graph to see a larger view.)
The UnretirementSM Index asked American workers if they would stop paying Social Security taxes, knowing that they would not receive any benefits, if they could. Results show that almost half (48%) would prefer to stop paying into the Social Security system.

  • Even among Americans nearing traditional retirement age, many would choose to stop paying Social Security taxes and then not receive the benefits. One in three (33%) workers over the age of over the age of 60 said they would rather opt out.


  • Income level was not a strong factor impacting American workers' attitudes toward Social Security. Almost half (47%) of Americans with a household income of less than $25,000 would choose to opt out of the system, and a little more than half (52%) of Americans making over $125,000 a year would also choose to stop paying Social Security taxes and not receive benefits.


  • Men are far more likely than women to say they would rather not pay into Social Security and receive any benefits. Overall, 49% of men and 44% of women would opt out. The greatest difference between genders was among workers age 40 to 49; 57% of men would opt out of Social Security, while 45% of women choose to do so.

Economic events delay retirement plans
(See Graph 2 below. Note: Click on the graph to see a larger view.)
The latest study reveals 54% of American workers will delay their retirement by at least one year due to the current economic situation.

  • 43% say the delay will be three years or longer
  • 24% say they will need to work more than five years

Americans change top reason for working past 67 to "earn enough money to live well"
(See Graph 3 below. Note: Click on the graph to see a larger view.)
While the number of Americans who expect to work at least 20 hours a week after age 67 is statistically unchanged from August to December 2008, their reasons for continuing to work have shifted dramatically.

  • Over the last 90 days, the most popular reason cited by American workers for why they would continue to work past the traditional retirement age of 67 shifted from "to stay mentally engaged" to "earn enough money to live well."
  • While staying mentally engaged fell to the second most popular reason, the number of Americans who cite they will continue working "for health care benefits" rose from the sixth primary reason to the third most common answer, with 64 percent now listing it as a reason to postpone retirement.

Forty-something Americans most impacted by economic environment
The Index also indicates that the current economic environment has most deeply impacted the retirement mindset of Americans aged 40-49.

  • 77% of 40-49 year old Americans who plan to work past traditional retirement age are doing so to receive health care benefits, far more than any other age group. In August, 61% of 40-49 year olds planned to work past 67 for this reason.
  • Forty-something Americans also lead all demographics in expecting to work five years past age 67 (28%), saving or investing more in the last three months (40%), and continuing to work after 67 in order to earn enough money to live well (87%).

Americans spend less instead of saving, earning more
Sixty-seven percent of all Americans are now reducing their spending. Over half (55%) are reducing their debt, while far fewer Americans are trying to find a better paying job (22%). Of those trying to reduce spending:

  • 75% are spending less on entertainment
  • 74% are eating out less often
  • 68% cut back on holiday gifts
  • 53% put off a large purchase
  • 34% delayed a routine or elective medical procedure

Confidence in government benefit programs continues to fall
Confidence that government benefit programs like Social Security and Medicare will remain solvent continued falling, especially among workers in their 30s and 40s.

  • 70% of workers in their 30s and 66% in their 40s do not believe Social Security will be available when they are 67.
  • On a more hopeful note, 90% of Americans have not had to withdraw any of their retirement savings from long-term investment products like IRAs, 401(k)s and annuities.

Index drops to 44
On a scale of 0 to 100, the Index dropped from its initial overall score of 46 to 44, showing Americans are more pessimistic now about their retirement prospects than in August.

The Index is made up of several subindices that address different areas that impact retirement decisions including the economy, personal finance, health, government benefits, and employee benefits. The greatest contributor to the lower Index score came from the personal finance subindex, which dropped seven points since August due to a significant decrease in confidence around personal income growth as well as retirement savings and investments.

Full Results

March 2009
New!
Focus on Social Security

December 2008
Press Release
Research Presentation

August 2008 Benchmark Study
Press Release
Research Presentation

Research Highlights

  • 48% of Americans would prefer to stop paying into the Social Security system even if it meant they would not receive Social Security benefits upon retirement


  • 54% of American workers will delay their retirement by at least one year due to the current economic situation


  • Over the last 90 days, the most popular reason cited by American workers for why they would continue to work past the traditional retirement age of 67 shifted from "to stay mentally engaged" to "earn enough money to live well"


  • 77% of workers ages 40-49 who plan to work into traditional retirement years are doing so to receive health care benefits, far more than any other age group


  • 67% percent of all Americans are now reducing their spending


  • Confidence that government benefit programs like Social Security and Medicare will remain solvent continues to fall


  • 90% of Americans have not had to withdraw any
    of their retirement savings from long-term investment products like IRAs,
    401(k)s and annuities