too old to work? american workers don’t think so - oecd old to work.pdf · introduction about...

14-Sep-2015

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© Transamerica Institute, 2015

Too Old to Work?

American Workers Don’t Think So 16th Annual Transamerica Retirement Survey of Workers

Introduction

About Transamerica Center for Retirement Studies

About the 16th Annual Transamerica Retirement Survey

Too Old to Work? American Workers Don’t

Think So

A Portrait of Workers by Age Range

Visions and Expectations of Retirement

Recommendations

Where to Learn More

Q&A

2

Agenda

14-Sep-2015

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16th Annual Retirement Survey of Workers

A 22-minute, online survey was conducted between February 18 – March 17, 2015 among a nationally representative sample of 4,550 workers by Harris Poll for Transamerica Center for Retirement Studies. Respondents met the following criteria:

• U.S. residents, age 18 or older.

• Full-time or part-time workers in a for-profit company employing 10 or more people.

Data were weighted as follows:

• To account for differences between the population available via the Internet versus by telephone.

• To ensure that each quota group had a representative sample based on the number of employees at companies in each employee size range.

Percentages are rounded to the nearest whole percent. Differences in the sums of combined categories/answers are due to rounding.

This report focuses on full-time and part-time workers combined.

The base includes:

• 579 workers in their Twenties

• 853 workers in their Thirties

• 895 workers in their Forties

• 1,243 workers in their Fifties

• 948 workers age Sixty and older

• 32 workers ages 18 and 19

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Too Old to Work?

American Workers Don’t Think So 16th Annual Transamerica Retirement Survey of Workers

14-Sep-2015

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Twentysomethings: Committed,

Cautious, and Concerned Thirtysomethings: Strong Savers

but Weak Planners

Fortysomethings: Financially

Frazzled but Focused

Fiftysomethings: Facing

Future Retirement Realities

Sixtysomethings: Transforming

Retirement as They Retire

The retirement landscape is shifting rapidly. Across age ranges, workers face unique opportunities, challenges, and retirement realities.

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Workers of All Ages Share Similar Dreams of Retirement

36

37

44

43

49

42

20

21

23

22

18

21

15

17

15

14

15

15

11

5

3

2

3

5

7

5

3

3

2

4

2

1

3

6

6

4

3

6

3

2

3

3

6

8

6

8

4

6

Sixties+

Fifties

Forties

Thirties

Twenties

All Ages

Greatest Retirement Dream (%)

Traveling

Spending more timewith family and friends

Pursuing hobbies

Continuing to work inmy current field

Doing volunteer work

Starting a business

Pursuing an encorecareer

None of the above

BASE: All Qualified Respondents Q1419. Which one of the followings best describes how you dream of spending your retirement?

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Workers Also Share Similar Retirement Fears

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36 38 34 35 37 38

All Twenties Thirties Forties Fifties Sixties+

Declining health that requires long-term care (%)

36 36 40

35 38

26


Social Security will be reduced or cease to exist (%)

33 36 38 34 31

23


Not being able to meet the financial needs of my family (%)

26 26 29 24 25 25


Cognitive decline, dementia, Alzheimer’s Disease (%)

25 22 24 25 29 22


Lack of access to adequate and affordable healthcare (%)

14 19 16 13 13

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Being laid off – not being able to retire on my own terms (%)

13 20

15 12 9 8


Feeling isolated and alone (%)

13 20

14 10 9 13


Finding meaningful ways to spend my time and stay involved (%)

BASE: All Qualified Respondents Q1422. What are your greatest fears about retirement? Select all.

Note: responses not shown for the 8 percent who said “none of the above.”

44 48 46 42 44 42


Outliving my savings and investments (%)

7

22

16

25

32

11

19

23

26

25

64

44

46

37

33

18

15

15

12

10

Sixties+

Fifties

Forties

Thirties

Twenties

Responses by Age Range

21

21

44

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All Ages

Majority of Workers Plan to Work Past 65 …

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BASE: ALL QUALIFIED RESPONDENTS Q910. At what age do you expect to retire?

At what age do you expect to retire? (%)

Before Age 65 At Age 65 After Age 65 Do Not Plan to Retire

NET – After Age 65 or Do Not Plan to Retire = 43%






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5

12

39

25

24

All Ages

Many Workers Plan to Work in Retirement

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BASE: ALL QUALIFIED RESPONDENTS Q1525. Do you plan to work after you retire?

Do you plan to work after you retire? (%)

NET – Plan to Work = 51%

Yes – Full-Time Yes – Part-Time No – Do Not Plan to Work Not Sure

8

11

13

14

12

44

44

38

32

37

31

25

23

25

24

17

20

26

29

27

Sixties+

Fifties

Forties

Thirties

Twenties

Responses by Age Range






Reasons for Working Range from Need to Enjoyment

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BASE: PLAN ON RETIRING AFTER AGE 65 AND/OR WORKING AFTER RETIREMENT Q1530. What is your main reason for working after retirement or the normal retirement age of 65?

28

38

37

23

19

30

20

19

22

30

27

23

8

8

7

9

6

8

14

18

16

19

20

17

26

13

13

14

22

17

4

4

5

5

6

5

Sixties+

Fifties

Forties

Thirties

Twenties

All Ages

Main Reasons for Working Past Age 65 and/or After Retirement (%)

Can't afford to retire/Haven't saved enough

Want the income

Need health benefits

Want to stay involved

Enjoy what I do

None of the above

NET – Income & Benefits = 61% NET – Enjoyment = 34%






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21

22

22

18

20

20

29

24

24

26

28

26

13

16

14

18

17

15

20

18

14

9

10

14

4

6

8

7

10

7

13

14

18

22

15

18

Sixties+

Fifties

Forties

Thirties

Twenties

All Ages

How do you envision transitioning into retirement? (%)

Continue working as long aspossible in current or similarposition until I cannot work anymore

Transition into retirement byreducing work hours with moreleisure time to enjoy life

Transition into retirement byworking in a different capacitythat is either less demandingand/or brings greater personalsatisfactionImmediately stop working once Ireach a specific age and beginpursuing my retirement dreams

Immediately stop working once Isave a specific amount of moneyand begin pursuing myretirement dreams

Not sure

Many Envision a Phased Versus Immediate Retirement

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BASE: ALL QUALIFIED RESPONDENTS Q1545. How do you envision transitioning into retirement?

NET – Transition = 41% NET – Planned Stop = 21%






How Transition Will Be Accomplished

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When you think about working past 65 or working while you transition into retirement, which of the following is the most likely to happen? (%)

Stay with current employer Change employers Start your own business Not sure

BASE: ALL QUALIFIED RESPONDENTS Q2701. When you think about working past 65 or working while you transition into retirement, which of the following is the most likely to happen?

40

17

11

32

Forties

54

16

8

22

Fifties

73

12

2

13

Sixties+

14-Sep-2015

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Employers’ Practices to Facilitate Transitioning Into Retirement

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BASE: ALL QUALIFIED RESPONDENTS

Q1145. Which of the following do you expect to be sources of income to cover your living expenses after you retire?

19

19

12

12

11

9

8

7

1

23

33

Accommodates flexible work schedules and arrangements

Enables employees to reduce work hours and shift from full-time to part-time

Enables employees to take positions which are less stressful or demanding

Offers financial counseling about retirement

Encourages employees to participate in succession planning, training, and mentoring

Provides seminars and education about transitioning into retirement

Offers lifestyle and transition planning resources

Provides information about encore career opportunities

Other

None of these

Not sure

Which of the following ways, if any, does your current employer help its employees who are transitioning into retirement? (%)

“Aging Friendly” Employers?

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BASE: All Qualified Respondents (N= 4550)

Q2745. Do you consider your employer to be “aging friendly” (for example offering opportunities, work arrangements, and

training and tools needed for employees of all ages to be successful)?

Do you consider your employer to be “aging friendly” (for example offering opportunities, work arrangements, and training and tools needed for employees of all ages to be successful)? (%)

45

23

32

Yes

No

Not sure

14-Sep-2015

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Recommendations

Workers

Calculate retirement savings needs, develop a retirement strategy, and write it down. Factor in living expenses,

healthcare needs, government benefits and long-term care. Envision future retirement and have a backup plan in case

retirement comes early due to an unforeseen circumstance such as health issues or job loss. Seek assistance from a

professional financial advisor, if needed.

Keep job skills up to date and in step with employers’ needs. Working longer and retiring at an older age requires

staying competitive today’s job market.

Employers

Pledge to be an “aging friendly” employer by offering opportunities, work arrangements, and training and tools needed

for employees of all ages to be successful.

Offer pre-retirees greater levels of assistance in planning their transition into retirement – including education about

distribution options, retirement income strategies, and the need for a backup plan if forced into retirement sooner than

expected (e.g. health issues, job loss, family obligations).

Create opportunities for workers to phase into retirement by allowing for a transition from full-time to part-time and/or

working in different capacities.

Policymakers

Identify and address any outdated public policy barriers to workers’ ability to work longer, retire at an older age, and

transition into retirement.

Encourage employers to offer retirement benefits to all employees and especially part-time employees who are less

likely to have access to benefits.

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Transamerica Center for Retirement Studies (TCRS)

This presentation was based on Retirement Throughout the Ages:

Expectations and Preparations of American Workers, published as part of

TCRS’ 16th Annual Retirement Survey. The full survey report, white paper,

and infographics can be found at www.transamericacenter.org.

Aegon Center for Longevity and Retirement (ACLR)

In celebration of its 4th Annual Retirement Survey in May 2015, Aegon

launched a research center for longevity and retirement at its corporate

headquarters in The Netherlands. ACLR conducts research, educates the

public, and leads a global dialogue on trends, issues, and opportunities

surrounding longevity, population aging, and retirement security. Please

visit ACLR at www.aegon.com/thecenter.

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Where to Learn More

http://www.transamericacenter.org

http://www.aegon.com/thecenter

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