Almost half of all workers (49%) say they expect to work past age 65 or plan to not retire at all. This isn’t due to a lack of planning or overspending. In fact, a recent report from Transamerica Center for Retirement Studies stated that 82% of traditionally employed workers are saving for retirement through employer-sponsored plans, like a 401(k), with many also contributing to additional savings outside of their workplaces. Self-employed workers, who don’t have access to workplace retirement models, are socking away money as well. Of these self-employed savers, 68% are saving through their own DIY retirement plans, with 79% saving through a tax-advantage retirement account.
Most workers dream of fully-funded retirements that allow for travel, hobbies and time with loved ones, but only 24% of workers across all demographics report feeling “very confident” that they will be able to retire with a comfortable lifestyle. In fact, 58% of workers expect to work at least part-time even into retirement.
Financial stability in retirement will require a concerted effort to improve the retirement system on a government level, starting with affordable out-of-pocket healthcare costs, prescription drugs and long-term care options, but supplementing incomes through legitimate business opportunities and side hustles could be the answer the American worker has been looking for.