Equitable Survey Reveals Half of Americans Believe Retiring at Age 65 Is Unrealistic
Equitable’s survey revealed that nearly half of consumers (47%) believe it is unrealistic for them to retire before or at the traditional retirement age of 65. Instead, they expect to retire nearly a decade later at an average age of 74. The top three challenges/obstacles cited were increasing living expenses (68%), fear of not having enough money saved (66%), and a lack of guaranteed income for retirement (39%). This reality contrasts sharply with the 18% of respondents who want to continue working past the age of 65.
“Today’s world is full of uncertainty, and inflation continues to make everything more expensive. This is having a profound impact on Americans’ retirement confidence, causing many to feel they will need to work well beyond age 65 to save enough — not out of choice, but rather necessity,” said
Equitable’s survey also found that if given the choice, nearly two-thirds of consumers (64%) would prefer a consistent and guaranteed paycheck in retirement versus having to determine how much to withdraw from their retirement accounts to make their money last throughout their lifetime. This sentiment was generally consistent across all age groups, with millennials expressing the most interest at 70%, followed by Gen X (65%), Gen Z (62%) and baby boomers (59%).
With that said, it is noteworthy that Equitable’s survey found that baby boomers, those closest to retirement, are the least interested in the security of a steady paycheck in retirement compared to younger workers, like millennials. This perhaps can be attributed to the fact that most baby boomers, given their stage of life, are more likely to already have access to reliable sources of retirement income — such as payments from
“Automatic enrollment, automatic escalation and target-date funds have been game changers in helping more Americans accumulate retirement savings. However, what’s often overlooked is how to help workers convert their savings into a reliable stream of income in retirement,” said Lane. “With the disappearance of traditional pension plans, the burden has shifted to individuals — especially younger generations — to seek the education, guidance and solutions to ensure their savings last throughout retirement.”
Equitable’s survey also revealed that nearly six in ten (57%) of Americans view the current economic conditions in the
According to LIMRA,1
About the study:
The survey was conducted by an independent, global consumer and B2B panel provider. Respondents include 1,000
About Equitable:
Equitable, a principal franchise of
Reference to the 1859 founding applies specifically and exclusively to
Annuities are long-term financial products designed for retirement purposes. They are contractual agreements in which payments are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. Contract limitations, fees and charges apply. Annuities are not suitable for all investors. Some variable annuities let you partially protect your savings while investing for growth potential. With such partial downside protection, there is a risk of a substantial loss of principal and previously credited interest because the contract holder agrees to absorb all losses to the extent they exceed the downside protection provided. In general, variable annuities are subject to investment risks, including possible loss of principal invested, and generally contain certain exclusions and limitations. Be sure to learn about the rules and potential risk before you invest.
Variable annuities are offered by prospectus, which contains important information about investment objectives, risks, charges, and expenses. For a prospectus, contact your financial professional or the issuing life insurance company and read the prospectus carefully before investing or sending money.
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1
LIMRA’s
2LIMRA’s
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Source: Equitable