Transamerica Center for Retirement Studies has recently released its 14th Annual Transamerica Retirement Survey of more than 3,650 full‐ and part‐time workers, which found that retirement confidence is on the rise in 2013 amid signs of economic recovery. Fifty‐five percent of workers are “somewhat” or “very confident” about retirement, representing an increase from 51 percent reported in 2012. This is still, however, four points below the 2007 confidence level of 59 percent.
Despite this increase in confidence, the recent years of what is often referred to as the Great Recession have impacted Americans’ retirement outlook. The majority of American workers (62 percent) said they are less confident about retirement since the recession began, and many Baby Boomers (43 percent) now expect to work longer and retire later.
“Retirement confidence is on the rise, but people are still not technically ready for retirement,” said Catherine Collinson, president, Transamerica Center for Retirement Studies. “Working longer and delaying full retirement is an excellent means of generating income and bridging a retirement savings shortfall, as well as an opportunity to stay active and involved. However, life’s unforeseen circumstances, such as health issues or a job loss, can derail the best of intentions. Retirement readiness requires having a retirement strategy as well as a backup plan if retirement happens sooner than expected.”
American workers’ views of retirement have changed dramatically from the long‐held notions of fully retiring at age 65 with many years of leisure to follow. Retirement dreams of traveling, spending time with family and friends, and pursuing hobbies are still alive; however, most workers (57 percent) now plan on working past age 65 and most also plan to continue working (54 percent), at least part‐time, in retirement. Most plan to continue working for financial reasons or healthcare benefits (66 percent), yet three in 10 plan to do so for enjoyment.