FINDING 1
Workers consider different influences when determining when to retire.
Historically, the consideration of ‘when to retire’ was driven primarily by the date or age a working person could begin collecting Social Security and pension or defined benefit plan payments. And it was common for workers to delay retirement to maximize income from these sources. Today―possibly due to uncertainty with Social Security and a decline in employer-sponsored pension and defined benefit plans―workers consider other factors when determining when to retire.
Interestingly, 'gut feeling' is on the decline.
We see a difference between generations when comparing the top influences on deciding when to retire:
Your client’s planned retirement age and actual retirement age might not match
Despite retirement being prompted by different factors, on average today’s workers still plan to retire at age 65. This differs slightly from the actual average retirement age of 63.5.1
Since 2017, there’s been a notable increase in people leaving the workforce between 60-65 years old.1
FINDING 2
Your client’s retirement doesn’t necessarily mean leaving work behind.
Plans to work when retired may change as workers approach and enter retirement.
Intent to continue working in retirement varies by generation
Looking more closely, the intent to continue working in retirement is held most strongly by the older working generations of Gen X and Baby Boomers. Thinking about retirement, workers see themselves:
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Office: 661-735-1558
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5060 California Avenue, Suite 600
Bakersfield, CA 93309
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