Results are based on a survey of more than 2,500 Manulife John Hancock Retirement plan participants and American retirees, run from May 9 through June 2. Even the retirement planning firm called this trend “eye-opening” in its report.
But just wanting to retire by a certain age doesn’t match reality. The report also illustrates the disconnect between the expected length of retirement and worker readiness. In other words, workers may want to retire earlier, but there’s a good chance they’re not financially prepared to do so.
“Our research over the past decade shows that Americans continue to feel the pressure of rising costs and competing financial priorities, which has impacted their confidence in their retirement planning,” Wayne Park, CEO of Manulife John Hancock, said in a statement.
That said, the study shows while Gen Z may want to retire in their 50s, they understand that may not happen. The report shows Gen Z expects to retire eight years later than they’d hope, at age 67, while millennials, Gen X, and baby boomers all expect 69 as their retirement age.
Americans struggle to close the gap between the retirement age they want and when they actually do for several reasons.
“Americans clearly want peace of mind in retirement, but the reality is that too many people either aren’t saving enough or aren’t confident in their ability to plan,” Kourtney Gibson, CEO of Retirement Solutions at TIAA, said in a statement.
Some of the world’s most successful businesspeople have worked well past the average retirement age. The most prominent example, of course, is Buffett, who will retire at the end of this year at age 95.
“I was late in becoming old—its onset materially varies—but once it appears, it is not to be denied,” he said. “To my surprise, I generally feel good. Though I move slowly and read with increasing difficulty, I am at the office five days a week where I work with wonderful people. Occasionally, I get a useful idea or am approached with an offer we might not otherwise have received.”
