Americans set for retirement failure, polls show – InsuranceNewsNet

Another survey showed that inflation causes a majority of Americans (54%) to reduce or stop their retirement savings. According to Allianz Life’s quarterly market perceptions survey Q3, most respondents (80%) said they feared inflation would have a negative impact on their purchasing power.

The reduction in retirement savings hits the younger generations, exposing themselves to difficulties later on. Millennials were the most likely to say they stopped or reduced their retirement savings due to inflation (65%), with 40% of baby boomers and 59% of Gen Xers saying so.

Even if they haven’t pared their savings, Americans fear inflation will hurt their retirement plans, with Gen X being the most anxious at 80%, while 76% of millennials and 73% of baby boomers agree.

It’s not just inflation that worries them, with 62% fearing a major recession is on the horizon.

Able to work?

Postponing retirement would seem to be a natural consequence of worrying about savings and income. But people probably overestimate their ability to stay on the job.

Even before the COVID shutdown, people in their 50s were forced out of long-term jobs, with 56% leaving involuntarily, according to a ProPublica/Urban Institute study.

Propublica job loss statistics.

“That’s not how most people think they’re going to end their working lives,” said Richard Johnson, an economist at the Urban Institute. “For the majority of older Americans, working past 50 is considerably riskier and more turbulent than we previously thought.”

Another one meta-analysis also found that half of people who retired between the ages of 55 and 64 did so involuntarily, according to the Schwartz Center for Economic Policy Analysis. This is especially true for workers in physically demanding jobs — a key reason more blacks and Hispanics are being forced into early retirement.

Job loss statistics.

Less health, more requirements

A recent book by two researchers showed that more than half of Americans don’t work consistently through their 50s, even before they hit their toughest years.

“A lot of people won’t be able to work even in their 60s, let alone,” said one of the editors, Lisa Berkman of the Harvard Center for Population and Development Studies.

The book, Overtime: The Aging Workforce in the United States and the Longer Future of Worklisted three reasons for early retirement, according to a Forbes article on the research.

Health is the main reason, even though people are living longer. They don’t necessarily live healthier.

According to the book.

Care is another main reason, especially women. If people are out of work to care for their parents in their 50s, it can affect the rest of their working life. Workplaces provide no more flexibility for older employees to care for loved ones than for young people to care for children.
The work itself drains the employees. Physical and mental stress overwhelms employees as they deal with the realities of aging.

The book also contains sobering news for people in their 50s who have tried to retire during COVID – if they want to go back to work, it’s hard to get back to the career level they left off. Only one in 10 earns that much again.

Steven A. Morelli is editor for InsuranceNewsNet. He has over 25 years of experience as a journalist and editor of newspapers and magazines. He was also vice-president of communications for an association of insurance agents. Steve can be reached at [email protected]

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