Almost Half of Younger People Want to Retire by 60
Category: Financial and taxes in retirement
June 14, 2023 – A study on retirement by the World Economic Forum found considerable unease about retirement issues in various age groups. Health and income issues were prevalent among its Pulse Poll respondents. The report was focused on how individuals, companies, and government will respond to longevity and people living longer lives.
Here are some of the key findings in the Understanding Longevity Study
Many people, especially women, are worried about having enough money in retirement. Some 55% of women are willing to admit they don’t understand their financial situation.
Health concerns are a big concern as people age. Many are worried they will have to become caregivers.
Men are more likely to be looking forward more to retirement than women.
The “bank of mom and dad” is flipping – in more cases younger people might have to support their parents – instead of the other way around. (Interesting, another study we came across found that many baby boomers are blithely spending money, while younger folks are having to pinch pennies)
Young people under 40 are concerned about how they will achieve their target income replacement levels.
All age groups, although they understand they might have to change career paths at some point to meet their financial goals, are concerned about the economic costs of doing that.
A great retirement gift!
Younger people are eight times more likely to use social media for financial advice.
44% of under-40s want to retire by 60. While that is an aspiration that was probably matched at that age by their baby boomer counterparts, it is unlikely the youngers will be able to pull it off, based on what boomers were able to accomplish.
Conclusions.
People are living longer, and that comes with issues of having enough money and staying healthy. Every generation has to deal with these challenges in their own unique era. Planning and discipline are always important to success.
Comments? Do these conclusions ring true to you? Please share your thoughts in the Comments section below.
Note:An earlier version of this article had 40 in the headline, instead of 60. We apologize for that error.
Comments on "Almost Half of Younger People Want to Retire by 60"
LS says:
I didn't see in this summary of the Longevity Study that younger people want to retire by age 40. The above summary states "44% of under-40s want to retire by 60." This summary doesn't state what populations were included in the study. Populations outside of the U.S. may have different goals based on their local economy and government support programs. I would say for younger people in the U.S., a very small percentage of younger people would want to retire by age 40 even if they could. Younger people are delaying getting married and starting families. Younger people are better educated than ever but they also have accumulated substantial student loan debt. It is very hard for them to purchase a home without support from parents and interest rates are preventing many from making that first purchase. We have had to help three of my four children with substantial down payments or outright purchase of a home for them. For the average young person, retiring by age 40 is a very unrealistic dream.
Admin says:
You are quite correct LS. Although I am sure there are some, not that many people plan on retiring before 40. I am sorry that my inadvertent typo in the original headline said 40 instead of the correct number, 69. Your words offer some good advice. So thank you for that.
JCarol says:
During our twenties and thirties, friends and I were dead certain we'd be retired by 50, never mind 60. Plenty were pretty sure that by 45 we'd be lazing on a Maui beach, piña colada in hand and keep 'em coming. Our parents smiled to themselves at the delicious dreams of youth while providing good “just in case it doesn’t work out that way you might want to do this…” counsel.
Many in the WWII generation were dead certain SS would be long gone by the time Boomers hit 65 and our foolhardy, ne'er do well, generation would be destitute. So much for the Cassandras.
In fairness, rare is the young person who can truly picture what it's like to be 70. Nevertheless we grow up and start planning for the worst (no beach retirement at 45) while hoping for the best.
At nearly 71, hubby and I haven’t fully retired because A) we enjoy the work, B) the extra money keeps our retirement funds intact, C) we can afford on nice vacations, D) when unexpected repairs and expenses come up we can cover them) and E) semi-retirement provides the means to throw a little money our children’s way now and then.
Could I have imagined working at this late stage - by choice(!) - at 25, 35, 45 or even 55? Not on your life.
p.s. Our Millennial kids and their friends all contribute max amounts to their 401Ks and live well within their means. All have bought homes despite the pricey real estate in So Cal.
I worry about some aspects of their futures, but not the financial ones.