- The pandemic has had far-reaching results on how workers plan for retirement — and for “pre-retirement,” a brand new life stage that serves as a transition interval between full-time work and retirement, in keeping with a survey of two,002 U.S. adults ages 35-70 and commissioned by 401(ok) plan supplier Human Curiosity. One in 7 (71%) workers who had a “very troublesome” time in the course of the pandemic now plan to retire later in life, though two-thirds (66%) assume the perfect pre-retirement age is beneath 50.
- Roughly 1 in 3 respondents stated the pandemic modified every thing about their retirement choices — how they save (31%), what they wish to do (31%) and once they wish to retire (29%), the autumn 2022 survey discovered. An excellent higher quantity stated it modified how they made well being choices (40%) and the way they save for emergencies (42%).
- “With the pandemic’s after-effects and ongoing inflation, folks have had a revelation about retirement,” Eric Phillips, a Human Curiosity senior director, acknowledged in a Nov. 1 launch. “That features ‘pre-retirement’ as nicely, so it’s extra essential than ever to maintain each one’s monetary current and future in thoughts,” he stated.
The findings proceed to make clear worker attitudes about retirement and what employers can study from them. For instance, in a March ballot by Resume Builder, 1 in 5 retirees stated they have been prone to head again to work this 12 months, HR Dive beforehand reported. Though 19% stated they deliberate to return to a former employer and 23% stated they may keep in the identical business however work for a brand new employer, 58% stated stated they might work in a special business.
The Human Curiosity survey helps flesh this out. It discovered that mobility was the important thing want for these planning retirement, with nearly all of workers saying they might transfer to a different metropolis, state or nation, or develop into nomadic. The survey additionally indicated that corporations with robust company social accountability stories aren’t only a draw for millennials and Gen Z. Of workers considering of transitioning to a brand new job or business earlier than retirement, 39% stated they wished to do one thing with an influence on their neighborhood.
Just like the Resume Builder findings, the Human Curiosity survey discovered that retirement choices are generally pushed by revenue. 4 out of 10 workers who’re considering of transitioning to a brand new job or business previous to retirement stated their motive for doing so could be to earn cash and make their financial savings last more.
Nevertheless, when workers stated they plan to retire later, and retirees specific an curiosity in returning to work, some could also be speaking about part-time employment, the survey indicated. Greater than two-thirds (69%) of those that think about transitioning into pre-retirement consider retirement is a gradual change away from full-time work, slightly than a whole cease. And the common particular person believes they’ll work as much as 11 hours every week and nonetheless be thought-about retired.
The findings additionally open the door to extra dialogue about retirement and monetary planning advantages. A current survey by TIAA discovered that whereas saving for retirement is a high monetary purpose of workers, 51% of staff stated the pandemic elevated their stress about having the ability to retire once they wished, HR Dive reported.
Retirement plan sponsors can do extra to assist workers with these considerations and their monetary transition to retirement, a TransAmerica Institute survey launched in August discovered. Pre-retirees face complicated monetary choices, however solely 44% of plan sponsors present entry to a monetary advisor, in keeping with the survey.