Visions of Retirement 3

More than half of Workers Expect to Work Past Age 65. More than half of workers (54 percent) expect to work past age 65 or do not plan to retire. However, expectations differ across generations: More Baby Boomers (69 percent) either expect to or are already working past age 65, or do not plan to retire than Generation X workers (57 percent). In contrast, most Millennials (58 percent) plan to retire at 65 or sooner.

More than half of Workers Plan to Work in Retirement. Fifty-five percent of workers plan to work in retirement, including 41 percent who plan to work part time and 14 percent full time. Just 28 percent do not plan to work after they retire and 17 percent are not sure. Baby Boomers, Generation X, and Millennials share similar expectations of working in retirement; however, Millennials (17 percent) and Generation X (14 percent) are significantly more likely than Baby Boomers (8 percent) to plan to work full-time after they retire.

Four in Ten Envision a Phased Transition into Retirement. Forty-four percent of workers envision a phased transition into retirement during which they will reduce work hours with more leisure time to enjoy life (27 percent), or work in a different capacity that is less demanding and/or brings greater personal satisfaction (17 percent). Twenty-two percent plan to continue working as long as possible until they cannot work anymore. Only 22 percent expect to immediately stop working either when they reach a specific age or savings goal, and 12 percent are not sure. Across generations, these views are generally similar. However, Generation X (26 percent) are more likely to envision continuing to work if possible, compared with Baby Boomers (21 percent) and Millennials (19 percent).

Most Are Realistic About Compensation in Phased Retirement. Among workers who envision a phased transition into retirement, most have realistic expectations regarding how changes in their work arrangements may affect their compensation, job title, and benefits. Most agree that if they were to reduce their hours, they would expect to be paid the same hourly rate (82 percent). If they were to take on a new role with fewer responsibilities, the majority would expect their job title to change (80 percent), and would expect to be paid the market rate for duties involved, even if it means a reduction in their level of pay (77 percent). Notably, nearly three in five workers (59 percent) say that if they were to shift from full-to part-time work, they would expect the same level of employee benefits –an expectation that may not be realistic because many employers do not offer benefits to part-time workers.