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CHICAGO (Reuters) - When it comes to retirement, many middle class Americans said 80 is the new 65 and plan to delay retirement because of worries over money, according to a new survey.
Wells Fargo bank asked 1,500 Americans who earned between $25,000 and $99,999 and ranged in age from 20 into their 70s questions about retirement, savings and Social Security for its seventh annual retirement survey.
Three-fourths of those surveyed said they expect to work in their retirement years. One quarter said they will "need to work until at least age 80" to live comfortably in retirement.
Of Americans who will work in retirement, "47 percent said that they are going to continue in the same job or a similar job of similar responsibility," Joe Ready, Well Fargo's director of Institutional Retirement and Trust, told Reuters Insider.
"That raises a lot of social and economic implications. Will they have the physical ability to work, the mental capacity? What does that mean for the younger work force in terms of coming through and looking to get ahead?"
Three-fourths of Americans said it is more important to have a specific amount saved before retirement, regardless of age, while only 20 percent said it is more important to retire at a specific age regardless of savings.
In terms of saving for retirement, 53 percent of those surveyed said they need to significantly cut back on spending now to save for retirement.
"People are overwhelmed. They're not saving enough," Ready said.
On average, Americans have saved only seven percent of their desired retirement nest egg, with a median of $25,000 saved versus a median retirement goal of $350,000.
"For several years now, we've seen that Americans are undersaving for retirement and a majority do not trust the stock market as a place to invest for retirement," Ready said.
"We did find a bright spot among middle class Americans - more than three quarters do not want to retire with mortgage debt. This is an important goal, particularly for younger Americans," said Laurie Nordquist, director of Wells Fargo Institutional Retirement and Trust.
Eighty-six percent of respondents said it's important to own their home debt free by retirement.
On the issue of Social Security there was an age divide. Those in their 60s expect Social Security to provide 46 percent of their retirement funding. But more than a quarter of Americans in their 20s and 30s expect no income at all from Social Security during their retirement.
(Editing by Greg McCune)
http://ca.news.yahoo.com/80-65-comes-re ... 25734.html
"I have a PhD in biochem (graduated at 25 yo in late 80s) I am 47 now single dad with two teenage daughters, one in college. I will work well into my 80s then be completely dependent on Social Security, that is if it even exists.
Despite the education and always being employed I never made more the 80k/yr and presently make around 50k. The jobs went into decline in the early 2000, in the biotech and pharmaceutical areas they started the great decline in 2001. This working into the 80s is not due to lack of education or motivation for many of us, the jobs with a decent income simple are not there no matter how educated you are.
In my 30s I had thought to be a home owner now closing in on my 50s I realize I will never be, on the positive side the hosing market crash had little effect on me other then rent being too high for my income. Today for most of us car ownership is a problem and home ownership is not even a consideration."
"How can anyone retire when the government and schools keep hitting you with ever increasing taxes (property & school taxes)?? I believe taxes are also taken out of your social security check. Everyone has to live within their means except the government it seems. If this is a democracy why don't the people get to vote on property tax increases?? You know the definition of income used to be what you made working in another country, not here in the USA .. but over the years the crooks have changed that to "income is whatever we say it is! now fork it over, sucka!" I think it is a disgrace that retired folks have to continue to pay property taxes and school taxes when they are living on a fixed income, and if you don't pay it well the mafia comes with guns to get you out of the house you worked 30 years to pay for and then they put it up for sale. Rest assured if you continued to vote for Democans and Republicrats you'll get soaked even more."
"We cannot afford to retire. The big financial institutions ended that dream when the screwed up the economy. They got a bailout and big bonuses, we got shafted."
"Between my divorce and the economy, I have been put back to my mid-twenties 401K levels (I'm 53). I have no hope for my future in regards to ever being able to retire. I'm practicing saying "Welcome to Walmart" and "Do you want fries with that?". And I'm an IT tech at a major corporation. But since I'm not a government worker, I only pay for other people's pensions. Not mine. Irony at it's finest."