A concerning new survey reveals that nearly one-third of American homeowners over 50 are uncertain about their ability to retire as planned, with many expecting to remain in the workforce indefinitely.
According to research conducted by Point, which surveyed over 1,000 homeowners aged 50 and above, 29% expressed serious doubts about retiring on schedule or leaving work altogether. While 46% felt very confident about their retirement timeline, 25% were only somewhat confident they could avoid postponing retirement.
The findings highlight a stark savings gap among older homeowners. Of those still working, 15% reported having less than $10,000 saved for retirement, with 88% of this group doubting their ability to ever fully retire. The outlook improved somewhat for those with larger nest eggs - 72% of respondents with $50,000 or less in savings worried about affording retirement, compared to just 25% of those with $250,000 saved.
Several key factors are driving these retirement concerns. Survey participants cited insufficient savings as a primary worry, along with rising housing costs, high interest rates, persistent inflation, and potential medical expenses or other major life events.
The economic environment has created additional challenges for retirement planning. With inflation reaching a 40-year peak of over 9% in June 2022, many Americans have struggled with surging prices for basic necessities like food, housing, and fuel. The Federal Reserve's aggressive interest rate hikes to combat inflation have also increased borrowing costs, putting additional strain on household budgets.
These financial pressures have forced many older Americans to make difficult choices - reducing their retirement savings, taking on more debt, or depleting existing savings just to manage daily expenses. While some may find purpose in continuing to work later in life, many face the prospect of extended employment out of financial necessity rather than choice.
The survey was completed in October 2023 using SurveyMonkey Audience, collecting responses from 1,026 participants.
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