Nearly half of all workers (49%) say they expect to work past age 65 or not retire at all. It’s not due to a lack of planning or overspending. Indeed, a recent report by Transamerica Center for Retirement Studies said 82% of traditionally employed workers save for retirement through employer-sponsored plans, such as a 401(k), and many also contribute to additional savings outside of their workplace. The self-employed, who don’t have access to workplace retirement models, are also grabbing the money. Of these self-employed savers, 68% save through their own stand-alone retirement plan, including 79% through a tax-advantaged retirement account.
Most workers dream of fully funded retirements that allow for travel, recreation and time with loved ones, but only 24% of workers across all demographics say they feel “very confident” they can retire with a comfortable lifestyle. In fact, 58% of workers expect to work at least part-time even in retirement.
Financial stability in retirement will require a concerted effort to improve the retirement system at the government level, starting with affordable healthcare costs, prescription drugs and long-term care options, but supplementing income with business opportunities. Legitimate and side hustles might be the answer the American worker is looking for.