Here’s the Top Reason 71% of Gen X Plans To Delay Retirement This Year
You can blame inflation for this one. More than half (51%) of pre-retirees over 50 and retired Americans are thinking about delaying or coming out of retirement.
That’s according to a new survey from F&G Annuities & Life. The survey looked at how the current market environment is affecting decisions around retirement planning.
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It may come as no surprise that Gen X seems especially worried, with 71% of those respondents considering or having pushed back their planned retirement date. That’s up from 65% last year.
All told, 68% of pre-retirees are considering pushing back their retirement, up from 64% last year.
One reason is that, despite the S&P 500’s stellar performance over the past year and moderating inflation, inflation continues to concern pre-retirees and retirees. In fact, inflation is the reason for 48% of pre-retirees who are considering delaying retirement. Forty-four percent of retirees and those who have considered rejoining the workforce also cite inflation as a reason.
Other drivers include concerns about running out of money and about a recession or stock market downturn.
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But financial concerns don’t tell the full story.
For respondents in the survey, it’s not just about the economy. Others said they were thinking about pushing back retirement or coming out of it because they enjoy the intellectual challenge and stimulation of working, or they love what they do for work. However, half of Gen X respondents said they were more likely to go to a different industry than their previous one if they came out of retirement.
“This remains a challenging macroeconomic environment to navigate for those close to or in retirement. As our survey shows, Americans are still reconsidering what retirement means to them, and that may look different from previous generations,” Chris Blunt, CEO of F&G, said in a statement.
“We believe taking a proactive approach in financial planning can help mitigate some of the economic risks, allowing people to focus on their own personalized roadmap of how and when to retire.”
Fidelity offers the following tips that could help you take control of your retirement:
Make a retirement budget now to get a handle on how much income you’ll need in retirement.
Bulk up your emergency fund.
Pay off high-interest debt.
Save money in tax-advantaged retirement accounts.
Align your retirement savings with your anticipated post-retirement spending needs.
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This article originally appeared on GOBankingRates.com: Here’s the Top Reason 71% of Gen X Plans To Delay Retirement This Year