A new Federal Reserve survey paints a bleak picture of America’s retirement future. The Report on the Economic Well-Being of U.S. Households notes that nearly a third (31%) of non-retired respondents reported having no retirement savings or pension, including 19% of those ages 55 to 64.
Additionally, almost half of adults were not actively thinking about financial planning for retirement, with 24% saying they had given only a little thought to financial planning for their retirement and another 25% saying they had done no planning at all.Of those who have given at least some thought to retirement planning and plan to retire at some point, 25% didn't know how they will pay their expenses in retirement.
Not surprisingly, the so-called Great Recession pushed back the planned date of retirement for two-fifths of those ages 45 and over who had not yet retired, and 15% of those who had retired since 2008 reported that they retired earlier than planned due to the recession.
Among those ages 55 to 64 who had not yet retired (the survey was conducted in September 2013), only 18% plan to follow the traditional retirement model of working full time until a set date and then stop working altogether, while:
• 24% expected to keep working as long as possible;
• 18% expected to retire and then work a part-time job; and
• 9% expected to retire and then become self-employed.
Just over half of respondents were putting some portion of their income away in savings, although about one-fifth were spending more than they earned.
Overall, the survey found that as of September 2013 many households were faring well, but that sizable fractions of the population were at the same time displaying signs of financial stress. Over 60% of respondents reported that their families were either "doing okay" or "living comfortably" financially; although one-fourth said that they were "just getting by" financially and another 13% said they were struggling to do so. The effects of the recession also continued to be felt by many households, with 34% reporting that they were somewhat worse off or much worse off financially than they had been five years earlier in 2008 and 34% reporting that they were about the same.
The survey was conducted on behalf of the Board by GfK, an online consumer research firm. Data collection began Sept. 17, 2013, and concluded on Oct. 4, 2013. Just over 4,100 respondents completed the survey.
