Though the economy is improving, many U.S. workers are still pumping the brakes on their retirement plans. According to a recent CareerBuilder survey, 53 percent of workers aged 60+ say they are postponing retirement, with 57 percent of men putting retirement on hold compared to 48 percent of women1. Four in 10 workers (40%) don’t think they’ll be able to retire until 70 or older.
– 2 in 5 workers don’t think they’ll retire until 70 or older
– A quarter of workers do not know how much they will need to save for retirement
– 26 percent of workers think they need more than $1 million to retire
This survey was conducted online by The Harris Poll from November 28 and December 20, 2017, and included a representative sample of 809 full-time workers across industries and company sizes in the U.S. private sector.
“Postponing retirement will make an impact across all of our country’s workforce, along with retirement policy and financial and health care planning,” said Rosemary Haefner, chief human resources officer at CareerBuilder. “With workers staying in their jobs longer, employers are adjusting hiring needs, but also reaping the benefits of the extra skills and mentoring abilities of mature employees.”
Postponing Because of Uncertainty
Are workers putting retirement plans on hold because they are unsure of how much to save? Approximately a quarter (24 percent) do not know how much they will need to save for retirement. Women are much more likely to be unsure of how much to save than men – 31 to 17 percent, respectively.
When asked how much money they think they’ll need to save in order to retire, workers said:
- Less than $500,000: 20 percent
- $500,000 to less than $1 million: 31 percent
- $1 million to less than $2 million: 14 percent
- $2 million to less than $3 million: 5 percent
- $3 million or more: 7 percent
When asked if they’re currently contributing to retirement accounts, roughly 1 in 4 workers 55+ (23 percent) said they do not participate in a 401(k), IRA or other retirement plan, a rate even higher in younger adults ages 18-34 (40 percent). Sixty-seven percent of workers in the South and 69 percent in the Midwest contribute to retirement accounts, compared to 73 percent in the Northeast and 71 percent in the West.