Many Americans Now Expect to Retire at 80

In a recent survey by Wells Fargo, results have shown that 25 percent of middle-class Americans now expect to work till they are at least 80 years old, in order to afford basic retirement costs.

In addition, another 74 percent of middle-class Americans say they expect to work in their retirement years, including 39 percent of all respondents who said they will need to work to make ends meet.

In a recent survey by Wells Fargo, results have shown that 25 percent of middle-class Americans now expect to work till they are at least 80 years old, in order to afford basic retirement costs.

In addition, another 74 percent of middle-class Americans say they expect to work in their retirement years, including 39 percent of all respondents who said they will need to work to make ends meet.

“The fact that the vast majority of middle-class Americans expect to work well past the traditional retirement age has significant societal and economic implications,” said Joe Ready, director of Wells Fargo Institutional Retirement and Trust.

“Will people be physically and mentally able to work later in life? What will it mean for young people entering the workforce? And, how does our system of retirement savings need to be reformed to help reduce the savings gap?” Ready added.

On average, Americans have saved only 7 percent of what is required for a retirement fund. The reported median saving is only $25,000, a huge short fall from the median retirement savings goal of $350,000. In a worrying sign of things to come, 30 percent of Americans in their 60s have less than $25,000 in retirement savings.

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The survey interviewed 1,500 respondents in their 20s through their 70s with a household income of $25,000 to $99,999 and household investable assets equivalent to $99,999 or less.

These findings come at a time when a volatile stock market continues to create anxiety over 401(k) balances, and political leaders are discussing cuts to future Social Security and Medicare benefits.

About half of those surveyed between the ages of 25 and 49 say they are willing to accept future reductions in Social Security and Medicare benefits to help lower the nation’s total debt. For those aged 50 to 59 that drops to 28 percent and only 19 percent of those over 60 agree with such programme cuts.

[quote] We’ve seen a shift in the role of work and employment during the traditional retirement years but we’re also seeing a shift in expectations for social support.

There is a willingness among younger Americans to put traditional support systems on the table for reform as we look for solutions to strengthen the country and address the debt load of our nation, said Laurie Nordquist, another retirement director at Wells Fargo.[/quote]

More than a quarter of people in their 20s and 30s don’t expect any income at all from Social Security during their retirement years. On average, people in this age group who expect to receive some Social Security payments predict that they will cover only 20 percent of their income.

Currently, the Social Security Administration says benefits replace about 40 percent of the average worker’s income in retirement.

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