The demise of traditional pensions is putting your golden years further out of reach.
by: Suzanne Woolley
U.S. workers are more confident that they’ll be able to retire someday. Just not until they’re 70.
Some 23 percent of Americans with jobs said they planned on being septuagenarian employees, up from 16 percent in 2009, according to Willis Towers Watson, a human resource consulting firm. While the average employee calculates he or she will retire at age 65, as a group they place the odds that they’ll still be working at age 70 at 50 percent.
If love of the job is what keeps someone working until or beyond 70, that’s one thing. (Or beyond age 80: Hello, Mssrs. Buffett and Bogle.) But the survey of 5,100 U.S. employees, and 30,000 in total, in 19 countries, found that employees who expected to work longer were “less healthy, more stressed and more likely to feel stuck in their jobs than those who expect to retire earlier.”
The evocative and somewhat creepy term used for these people is “hidden pensioners.” An even less happy survey result is that 40 percent of those planning to work into their 70s feel stuck in their jobs. Of those planning to retire at age 65 or earlier, about 28 percent feel that way.
“The decline of defined benefit plans and employer subsidies for early retirement removed one tool that encouraged that orderly rate of workers retiring,” said Steve Nyce, a senior economist at Willis Towers Watson.
There is some good news in the survey, however: In the U.S., and around the world, the level of short-term financial worry has fallen. Read More….