Are you ready for pretirement?
Are you paid by
the hour? Do you believe you will be able to retire with comfort? If not, you
are not alone, just over 50% of hourly employees feel they will be able to
retire comfortably. A survey of 2,000 employees split evenly between salaried
and hourly workers reveals that hourly workers are less confident they will
retire comfortably compared to salaried workers (53% vs. 63%).
The survey conducted
in 2023 on behalf of a Retirement benefit provider finds that 25% of employees
say their employer does not offer a retirement savings plan.
Hourly workers
making less than $60,000 a year have even less access to a retirement plan than
salaried workers making the same amount (28% with no access for hourly workers
vs. 21% for salaried workers).
This lack of
access to planning and savings programs puts workers’ financial independence
during retirement years in jeopardy. A big concern is that although 54 percent
of hourly workers say they will be somewhat or very reliant financially on a
family member, they are twice as likely to say they do not have any other
family member they can rely on.
Another issue
found in the survey was that the average worker is saving 70 percent of what
they plan to withdraw annually every year in retirement. While the average
employee has $128,815 saved for retirement, they anticipate needing to withdraw
$184,850 annually upon retiring.
The good news is
that nearly a third (32%) of hourly workers say their parents and grandparents
did not have the same access to retirement savings plans,
There
is a new emerging life stage called pretirement. This is an emerging life stage
between full-time work and retirement in which hours are reduced and people
consider new job roles. A majority (73%) of workers are likely to embrace
“pretirement.” Of those planning to “pretire,” 39 percent expect to pivot to a
new job in a different industry.
Originally Published on https://boomersnotsenior.blogspot.com/
