While the idea of retiring early is appealing to many, a recent survey found that a majority of Americans surveyed have decided early retirement is no longer within reach.
Resume-building service MyPerfectResume.com’s new report found that 71% of employees polled believe the concept of “Financial Independence, Retire Early,” or FIRE, is unrealistic for most people, or at best only possible for high earners or wealthy households. The survey reports that 55% expect to retire at 65 or later, including 14% who do not expect to fully retire at all.
The national survey of 1,000 U.S. workers found that retirement is increasingly becoming a moving target rather than a fixed milestone.
“FIRE may be appealing, but for many workers the reality is moving in the opposite direction,” says MyPerfectResume Career Expert Jasmine Escalera.
See also: Nearly 1 in 5 Gen Xers don’t expect to ever fully retire
Other key findings include:
- 35% of workers say their expected retirement age has moved later over the past three years.
- 64% cite cost of living as a factor preventing them from retiring as early as they would like.
- 32% are not confident they will be able to fully retire.
- 51% say retiring before age 60 is not realistic for someone with a typical full-time job.
What happens if more people stay in the workforce longer?
For employers and HR leaders, Escalera says, the findings point to a shifting national workforce, with much fewer predictable transitions.
“If more employees stay in the workforce longer, organizations will have people at very different stages of their careers working alongside one another for longer periods,” she explains.
According to the survey, some leading barriers preventing workers from retiring as early as they would like include:
- not earning enough income: 37%
- not enough retirement savings: 34%
- healthcare costs: 31%
- housing costs: 30%
- debt: 30%
Escalera explains that HR leaders need to consider what employees may need from their organization if they work longer than standard expectations. This includes continued opportunities to build their skills and grow professionally. Escalera says the delayed retirement trend offers an opportunity for employers to retain valuable experience and institutional knowledge while still creating advancement opportunities for younger workers.
“At the same time, early-career employees may bring new skills, ideas and perspectives that can be shared across generations,” according to Escalera. Creating more opportunities for mentorship and collaboration can help organizations retain valuable knowledge while giving employees the chance to continue learning from one another.
“As retirement timelines continue to shift, the main challenge will be designing workplaces that support longer careers without creating bottlenecks in mobility or leadership development,” Escalera concludes.
The post 1 in 3 employees say retirement is out of reach appeared first on HR Executive.
Read MoreHR Executive