The COVID-19 pandemic may be fading, but its impact on when people plan to retire is just beginning.
Prior to the arrival of the coronavirus, the average American worker planned to retire at age 62. But in the wake of the pandemic, workers have pushed that age up to 65.
That is the finding of the latest installment of Franklin Templeton’s “Voice of the American Worker” study, which surveyed 1,000 working adults who had some form of retirement savings. The investment firm says three factors — the pandemic, inflation and an uncertain economy — have forced workers to reassess their retirement plans.
In particular, workers say they are delaying their retirement date due to soaring living costs during the past couple of years.
Fortunately, the disappointment of pushing back retirement has not translated into workers simply giving up on saving for their golden years. Well over half of respondents — 57% — say they are more likely to continue to contribute to their retirement account than to give up on saving altogether.
And despite more challenging circumstances, workers appear especially determined to fight for their retirement dreams. Nearly three-quarters of respondents — 71% — say today’s economic woes are motivating them to take a more active role in managing their finances.
Although workers now plan to stay at their desks — or wherever it is they work — a little longer, they haven’t entirely given up on dreams of retiring earlier.
Among survey respondents, 69% say they would consider retiring a bit earlier if their employer offered them post-retirement benefits.
How to boost your net worth
Whether you are nearing retirement or still have decades to go, increasing your knowledge about financial matters is the key to building wealth over the long term.
If you want to boost your financial literacy, enroll in the Money Talks News course Money Made Simple.
MTN founder Stacy Johnson offers 14 weeks of lessons on money basics in the course. You will learn how to improve your financial life in all the following areas:
- Budgeting
- Banking
- Credit
- Taxes
- Insurance
- Investing
- Real estate
- Estate planning
After finishing these lessons, you will be ready to manage money more efficiently while spending less time getting the results you want. As Stacy writes:
“Whatever your situation, understanding and learning to control your money is going to improve your life. If you’re rich, you want to stay that way. If you’re not, you want to get that way.”