Why Social Security Running Dry is a Threat to Americans’ Retirement

January 7, 2020

According to new research, a majority of American workers now anticipate working past age 65 – and perhaps not even retiring at all.

The study, conducted by the Transamerica Center for Retirement Studies, found that 54% of workers either plan to stop working only after they turn 65, or to keep working indefinitely.

55% of survey respondents shared their plans to work part or full time in retirement. While many cited concerns about their finances as their primary motivation, they also explained their desire to keep working as a measure to avoid social isolation in retirement.

The CEO and president of the Transamerica Center for Retirement Studies, Catherine Collinson, summarized the study’s findings succinctly. 

“People want to extend their working lives and plan to keep working in retirement. By and large, many simply have not yet saved enough to retire comfortably.”

The study also showed another key reason why workers are looking to later retirement: concerns about the longevity of Social Security. 3 out of 4 survey respondents stated that they were worried the program would be gone before they reached retirement age.

According to the Social Security Administration, the current retirement age for people born after 1960 is 67 – a number that many anticipate will continue to rise higher.

A second study by the Transamerica Center compared the U.S. retirement age with that of other countries. The results showed the Netherlands with the highest age of retirement – 67 – and other European nations not far behind.

Although the global median retirement age currently stands at 65, evidence suggests that this number will steadily grow in the coming years.

As the global median retirement age creeps up and American Social Security is increasingly under threat, it’s important to prepare carefully for your retirement. 

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Sincerely,

Doc Wellington

Retirement Insider