Photo: Flickr via joshuacraig
Nearly 70 per cent of workers aged 21-50 say they plan to work at least part-time in retirement but, unlike boomers, they’re not blaming job insecurity or their depleted savings accounts.Turns out most of today’s young workers simply want to stay active, according to a new Harris Interactive poll by global investment firm T. Rowe Price.
Three-quarters of more than 860 respondents said they’ll work at least part-time because they “want to stay … involved” compared to just over 20 per cent who said they won’t have enough in savings.
If anything, this is further evidence that the old vision of retirement – a hammock, cruises every other month and a Florida timeshare – has been one of the biggest casualties of the recession. The question is whether that ‘less play, more work’ mentality is something to worry about. Boomers are already edging younger workers out of the workforce by pushing off retirement, a trend that seems likely to persist.
Here are some other telling findings from the poll:
- The mean age at which they plan to retire is 62.
- The mean number of years they expect to live in retirement is 22.
- 77 per cent expect tax rates will increase between now and when they retire.
- 43 per cent expect a part-time job to be a source of income during their retired years.
Still, the fact that younger workers are struggling to build up nest eggs early in their career is as troubling as ever. First of all, the general consensus among financial experts is to store at least six months worth of savings before even thinking about contributing to retirement accounts. Try telling that to 20-somethings who can hardly find decent-paying work.
Nearly 100% of 2,000 respondents in a PNC Financial survey said they save on a regular basis but just 13 per cent said they’re putting away cash for retirement.