(Bloomberg) — Inflation and the rising cost of living have caused 40% of private sector workers age 45 or older to drop out of retirement plans.
That’s according to a survey by the Nationwide Retirement Institute, which also found that 15% of older workers say they don’t think they’ll be able to retire. Employees planning to retire later also cited shrinking retirement savings (47%) and fears that the market crash would destroy savings (44%) as reasons for wanting to work, on average, for four years longer than they planned just one year ago.
Overall, in the harsh economic environment, 24% of workers aged 45 or older said they felt they were “on the wrong path to retirement”. Only 58% reported having a positive view of their retirement plan and financial investments, down from 72% in a nationwide survey for 2021.
The online survey, conducted from July 14 to August 5, reached 1,000 retirement plan participants aged 45 or older and 100 employees aged 35 to 44, as well as 500 company plan sponsors or makers Decision beneficiaries and 100 sponsors of the government plan or its benefits. Decision-makers. The result was written down before the recent market crash, which hit stocks and has a deeper impact on many retirement accounts.
Nationwide, which is among the financial services firms hoping to make their annuity, or guaranteed lifetime income, and products more popular in workplace retirement savings plans, it has found about half of employees interested in income options as part of a target date fund or a managed account at Plan their workplace.
However, only 21% of employees said they are familiar with investment products with guaranteed lifetime income.
To contact the author of this story:
Susan Woolley in New York in [email protected]
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