For many workers, dreams of traveling, playing golf or just relaxing on a porch swing in their golden years seem very much out of reach.
About 30 percent of U.S. workers over age 60 said they don’t plan to retire until at least 70, and 20 percent said they don’t believe they will ever be able to retire, according to a new survey by CareerBuilder.
Not participating in savings plans is throwing a wrench into many workers’ retirements. Twenty-six 26 percent of workers over 55 said they do not participate in a 401(k), IRA or other retirement savings plan. CareerBuilder in February and March polled over 3,200 full-time employees, including 500 over age 60.
Another problem is uncertainty over how much retirement income is necessary. One-third of workers over 60 said they just weren’t sure how much money they’ll need to save, the report said.
(In a separate survey of retirement readiness from Bank of America Merrill Lynch, a whopping 81 percent of Americans said they don’t know how much money they’ll need to fund their retirement years.)
Most think they’ll need at least $500,000. About one-quarter believe they’ll need less than $500,000, according to CareerBuilder.
Fidelity Investments, a large provider of retirement accounts, recommends people save at least 10 times their ending salary by age 66, the age at which most workers qualify for full retirement benefits from Social Security. Under this rule, someone making $100,000 would need to save $1 million in their retirement accounts.