The notion of enjoying a carefree retirement
will soon be obsolete, according to Gallup’s annual Personal Finance poll, released this month. Most Americans expect to continue working past their “retirement” at least
on a part-time basis, but may create a “new class of productive workers,” which will contribute to shaping a stronger
economy in the future.
A whopping three quarters of non-retired Americans
say they plan to rely on income from part-time work after they retire, including 21% who maintain that they will depend on
part-time work as a “major source” of income. More than half (52%) expect post-retirement part-time work to provide
a “minor source” of income.
Of current retirees, less than a quarter rely
on part-time work as a source of income, with a mere 3% characterizing the income as a major source of funds.
Study author Lydia Saad attributes this shift
in retirement expectations to several factors: “Much of this revolutionary change in attitudes is forced on baby boomers
and Generation X by doubts about the future solvency of the Social Security Trust Fund. Also, according to Federal Reserve
Board statistics, Americans are not saving nearly enough for their own retirements.” (“This is Not Your Father’s
Retirement,” May 14, 2007, Galluppoll.com).
About three quarters of Americans, retired
and not yet retired, state that they have enough money to “live comfortably” right now. Non-retirees are more pessimistic about their financial futures than those who have retired; just over
half (53%) state that they expect to live comfortably post-retirement.
Social Security benefits are viewed differently
by retirees vs. non-retirees. While half of current retirees name Social Security as a major source of income, only one quarter
of non-retirees expect to enjoy its benefits at the same capacity.
To compensate for this deficiency, non-retirees
cite several other options as minor and major sources of income for the future, including 401(k), IRA, Keogh plans, other
savings, home equity, and part-time work.
Non-retirees not only expect to work after
retirement, but anticipate doing so later than current retirees. More than half (57%) of pre-retirees expect to retire at
age 65 or older. This is a stark contrast to age 60, the average age at which current retirees stopped working (nearly 70%).
