2006 State Report > Economics > Planning for Retirement
Economics: Planning for Retirement
A secure retirement is typically supported by four components: Social Security, pension and savings, continued earnings, and affordable health insurance. All four are facing increasing pressures in today’s economy, causing many older Americans to retire later than planned or to return to work. According to the EBRI Retirement Confidence Survey, workers of all ages are planning to retire later now than they were in 1995.
Expected Age at Retirement, 1995 and 2005
| Expected Age At Retirement | All Workers | Ages 45-54 | Ages 55+ | |||
|---|---|---|---|---|---|---|
| 1995 | 2005 | 1995 | 2005 | 1995 | 2005 | |
| Less Than 60 | 21% | 16% | 16% | 14% | 7% | 6% |
| Ages 60-64 | 24% | 19% | 28% | 20% | 26% | 31% |
| Age 65 | 35% | 26% | 39% | 25% | 31% | 19% |
| Age 66 or Older | 15% | 24% | 11% | 26% | 25% | 24% |
| Never Retire | -- | 6% | -- | 8% | -- | 8% |
| Don't Know/Refused | 5% | 9% | 6% | 7% | 11% | 11% |
| Median Expected Age | 65 | 65 | 65 | 65 | 65 | 65 |
Source: Employee Benefit Research Institute and Matthew Greenwald & Associates, Inc. 1995 and 2005 Retirement Confidence Surveys.
Financial experts estimate that most retirees will need a post-retirement income equaling 70 percent of their pre-retirement income in order to ensure a secure retirement. For those earning lower incomes, post-retirement incomes of 90 percent or more are required.