Golden years

Despite a strong working culture and an increased cost of living, particularly for health care and housing, Americans’ expectations of retirement age are steadily declining.  Ten years ago, 55% of American workers expected to be working full-time past the age of 62 compared to only 46% today.  Similarly, where 36% of workers previously expected to be working full-time past the age of 67, that figure has fallen to 31%.  According to an analysis by the Federal Reserve Bank of New York, there is no singular or clear reason for the change in expectations. The bank posits there has been a cultural shift in attitudes toward the value of work coupled with a reassessment of household net wealth, and a related increase in confidence in reaching retirement savings goals. The relative availability of part-time work and reduced opportunity for full-time employment for older workers may also play a role in the trend.

Source: US Federal Reserve Bank of New York, May 2024