A new survey from the Transamerica Center for Retirement Studies® finds almost half of Baby Boomer workers (49 percent) expect to or already are working past age 70 or do not plan to retire. Their reasons for doing so are almost as likely to be healthy aging-related (78 percent) as financial-related (82 percent).
The survey, Emerging From the COVID-19 Pandemic: Four Generations Prepare for Retirement, compares Baby Boomers, Generation X, Millennials, and Generation Z, to help illustrate how workers’ expectations and preparations differ by generation and how the retirement landscape has evolved.
“Baby Boomers have re-written societal rules at every stage of their lives, including retirement. With aspirations of working into older age and a flexible transition to retirement, they are upending the notion that work and retirement are mutually exclusive. As a result, they are paving the way for future generations,” said TCRS President and CEO Catherine Collinson.
Baby Boomer highlights include:
- 40 percent of Baby Boomer workers expect Social Security to be their primary source of retirement income;
- 83 percent are saving for retirement in an employer-sponsored 401(k) or similar plan and/or outside the workplace. They began saving at age 35 (median).
- Those participating in a 401(k) or similar plan contribute 10 percent (median) of their annual pay. Baby Boomer workers have saved $162,000 (estimated median) in total household retirement accounts but only $15,000 (median) in emergency savings.