New Research Shows that Two Out of Three
Pre-retirees Over 50 Are Considering Pushing Back Their Planned
Retirement Date
DES
MOINES, Iowa, July 17,
2024 /PRNewswire/ -- Just over half (51%) of
pre-retirees over 50 and retired Americans¹ are considering
delaying or coming out of retirement, according to a new survey
from F&G Annuities & Life, Inc. (NYSE: FG) (F&G), a
leading provider of insurance solutions serving retail annuity and
life customers and institutional clients. F&G's second annual
Retirement Reconsidered survey explored how the current market
environment is impacting decisions leading up to and into
retirement.
Inflation Continues to Drive Retirement Decisions
While the S&P 500 is up more than 20% over the past year and
inflation has somewhat moderated since 2023, pre-retirees over 50
are still feeling anxious. In fact, 68% of pre-retirees are
considering pushing back their retirement, up from 64% last
year.
Gen X appears especially concerned as 71% of those respondents
are considering or have pushed back their planned retirement date,
up from 65% last year. As pre-retirees push back their target
dates, many people who've already taken the plunge are
reconsidering their decision.
Half (49%) of pre-retirees over 50 that are either considering
or have pushed their retirement back are doing so because of
inflation worries. Meanwhile, 44% of retirees and those who have
considered rejoining the workforce cite inflation as a reason.
"This remains a challenging macroeconomic environment to
navigate for those close to or in retirement," said Chris Blunt, CEO of F&G. "As our survey
shows, Americans are still reconsidering what retirement means to
them, and that may look different from previous generations. We
believe taking a proactive approach in financial planning can help
mitigate some of the economic risks, allowing people to focus on
their own personalized roadmap of how and when to retire."
But It's Still Not Just about the Economy
Beyond financial risks, the most cited reason for retirees and
those who have considered rejoining the workforce was because they
enjoy the intellectual challenge and stimulation of working.
A third of people (33%) who are either considering or have
pushed back their retirement say they are doing so because they
love what they do for work. The same percentage enjoy the
intellectual challenge and stimulation from working.
For retirees and those considering coming out of retirement, 45%
say they enjoy the challenge from working, while just over a
quarter (27%) say they loved what they did for work.
X Marks the Spot for Reconsidering Retirement
Gen Xers are especially anxious about retirement. When asked why
members of this generation have considered pushing back their
planned retirement date, they cited worries about not having enough
money for retirement (49%), inflation (47%), wanting more financial
options and a larger safety net (42%) and worries about a recession
or stock market downturn (31%). Interestingly, half of Gen X
respondents said they were more likely to return to a different
industry than the one they previously worked in if they came out of
retirement.
"As Gen Xers near retirement, our study shows that their worries
are heightened," said John Currier,
President of F&G. "Having the right advice and financial tools
can help alleviate these concerns, including engaging with a
financial professional and considering products like fixed indexed
annuities (FIAs) and registered index-linked annuities (RILAs) that
can provide a mix of upside potential and downside protection."
Unretiring – Who Are You Going to Call?
It's clear that many individuals over 50 are rethinking their
retirement, and many are seeking advice before they make changes.
While a financial advisor is important in providing a roadmap, the
survey found that people are often looking to friends or family for
counsel instead.
Of those contemplating retirement and those who have unretired,
71% reported seeking advice prior to making a decision, with 57%
consulting a spouse. Surprisingly, only 16% discussed the decision
with a financial advisor.
For more information on F&G's latest survey, please visit
fglife.com/research.
Survey Methodology
This survey was conducted online by Directions Research,
independently recognized as one of the nation's leading business
decision insight firms. The survey was fielded from May 1 to May 16, 2024, among a nationally
representative sample of 2,048 U.S. adults. Respondents were
targeted to Americans ages 50+, who are financial decision-makers,
that have $100K+ in financial products/savings.
About F&G
F&G Annuities & Life, Inc. is committed to helping
Americans turn their aspirations into reality. F&G is a leading
provider of insurance solutions serving retail annuity and life
customers and institutional clients and is headquartered in
Des Moines, Iowa. For more
information, please visit fglife.com.
Media Contact
Gabrielle Simon
pro-F&G@prosek.com
413.695.3818
Investors Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
515.330.3307
Investor.relations@fglife.com
¹ Survey fielded of Americans age 50+ that own any financial
products and have a net worth of $100,000 or more. For Gen X survey respondents,
they are ages 50-59.
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SOURCE F&G Annuities & Life, Inc.