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People who aren't yet retired don't intend to dial back completely once it's their turn. And they don't plan to keep working just because they need the money -- although a large majority say the value of their savings for retirement has decreased over the past two years.
Those are some of the results of our July 12 Reader Survey. Some 750 readers responded, over 500 of whom are still working at their regular jobs. About two-thirds of those who haven't yet retired said they intend to stay active in the workplace even after they leave their regular jobs -- primarily because they want to stay challenged and stimulated. Still, more than one-third of the active workers -- about 130 people -- said they'll continue to work at one job or another because they'll need the money.
Indeed, some 330 people said they expect to earn up to half their pre-retirement income from a post-retirement job. Perhaps that's because only 57% of all the readers who responded -- including those who are already retired -- are either very or somewhat confident of having enough income in retirement. About 40% are either somewhat worried or very worried that they won't have enough.
WORKING LONGER. In order, the three events that both retirees and active workers fear could leave them with too little retirement income are catastrophic medical expenses, simply outliving their savings, or a stock market crash. These fears exist even though 70% of those who responded said they have a net worth of $200,000 or more -- and 17% claimed a net worth of $1 million-plus.
Generally, the active workers who responded to the survey intend to retire at a later age than the respondents who are already retired -- though sizable chunks of both groups chose 55 to 60 as their preferred retirement age. And each group either already does or intends to rely primarily on employer-sponsored pension plans and their own savings for retirement income -- not on Social Security.
This Reader Survey, an unscientific poll since anyone who wanted could respond, was based on a Harris Interactive Inc. poll that's included in the July 29, 2002, issue's Retirement Guide.
Here are the complete results:
Are you currently:
Option
Total
%
Employed in your primary career
534
71.58 %
Looking for a job in that career
22
2.95 %
Retired from your primary career
166
22.25 %
Other
24
3.22 %
If you're retired, at what age did you do so?
Option
Total
%
55-60
94
15.02 %
61-62
22
3.51 %
63-65
30
4.79 %
66-67
11
1.76 %
67-plus
19
3.04 %
I'm not retired
450
71.88 %
If you aren't retired, at what age do you plan to do so?
Option
Total
%
55-60
203
30.71 %
61-62
105
15.89 %
63-65
131
19.82 %
66-67
60
9.08 %
67-plus
57
8.62 %
Other
26
3.93 %
I'm retired
79
11.95 %
If you're retired, what best describes your status?
Option
Total
%
Not working for pay
102
16.89 %
Working at my former occupation at reduced hours and pay
17
2.81 %
Work full-time in a different occupation
13
2.15 %
Work part-time in a different occupation
14
2.32 %
Do consulting in my former industry
22
3.64 %
Do consulting in a different industry
3
0.50 %
Have started a new business
7
1.16 %
Other
18
2.98 %
I'm not retired
408
67.55 %
If you're retired and you continue to work, why?
Option
Total
%
I need the money
30
5.40 %
I want to stay challenged and stimulated
57
10.25 %
I want to stay close to friends and associates from work
3
0.54 %
Other
11
1.98 %
I'm not retired
369
66.37 %
I'm retired but don't work
86
15.47 %
If you're retired and work, approximately what percentage of your pre-retirement income do you earn from work now?
Option
Total
%
Less than 25%
30
5.40 %
25% to 49%
18
3.24 %
50% to 74%
18
3.24 %
75% to 100%
9
1.62 %
100%-plus
9
1.62 %
I'm not retired
390
70.14 %
I'm retired but don't work
82
14.75 %
If you're retired, what are your primary sources of income (i.e., those that account for more than 10% of your total income)?
Option
Total
%
Social Security
26
4.37 %
Employer-sponsored pension
61
10.25 %
Employer stock program, including stock options
3
0.50 %
Personal savings and investments
74
12.44 %
Inheritances
1
0.17 %
Earnings from continued employment
13
2.18 %
Other
7
1.18 %
I'm not retired
410
68.91 %
If you're still working, what are you most likely to do after you retire?
Option
Total
%
Not work for pay
183
26.68 %
Continue to work in my current occupation, for reduced pay
40
5.83 %
Work full-time in a different occupation
26
3.79 %
Work part-time in a different occupation
194
28.28 %
Do consulting within my current industry
107
15.6 %
Do consulting in a different industry
7
1.02 %
Start a new business
42
6.12 %
I'm already retired
87
12.68 %
If you're still working, what's the primary reason you'll keep working after retirement?
Option
Total
%
I'll need the money
138
20.78 %
I'll want to stay challenged and stimulated
317
47.74 %
I'll want to stay close to friends and associates from work
9
1.36 %
I'm already retired
65
9.79 %
I don't plan to work after retirement
135
20.33 %
If you're still working, what percentage of your pre-retirement income do you expect to earn from work after you retire?
Option
Total
%
Less than 25%
167
25.46 %
25% to 49%
175
26.68 %
50% to 74%
90
13.72 %
75% to 100%
36
5.49 %
100%-plus
19
2.90 %
I don't plan to work after retirement
169
25.76 %
If you're still working, what do you expect your primary sources of income to be after you retire (i.e., those that account for more than 10%)?
Option
Total
%
Social Security
65
9.70 %
Employer-sponsored pension
187
27.91 %
Employer stock program, including stock options
22
3.28 %
Personal savings and investments
275
41.04 %
Inheritances
7
1.04 %
Earnings from continued employment
40
5.97 %
Other
10
1.49 %
I'm already retired
64
9.55 %
How confident are you that your retirement income is -- or will be -- sufficient?
Option
Total
%
Very confident
115
15.65 %
Somewhat confident
308
41.9 %
Somewhat worried
217
29.52 %
Very worried
80
10.88 %
Not sure
15
2.04 %
What do you consider the biggest single threat to you financial security in retirement?
Option
Total
%
Catastrophic medical expenses
253
34.47 %
Outliving your savings
209
28.47 %
Losing your post-retirement job
11
1.50 %
Becoming disabled
55
7.49 %
Stock market crash
176
23.98 %
Supporting your children
18
2.45 %
Supporting your aging parents
12
1.63 %
Over the past two years, has the value of your savings for retirement (not including your home):
Option
Total
%
Increased
186
25.07 %
Decreased
460
61.99 %
Remained the same
76
10.24 %
Not sure
20
2.70 %
What is your total net worth?
Option
Total
%
Less than $200,000
189
25.61 %
$200,000 to $400,000
144
19.51 %
$400,001 to $600,000
107
14.5 %
$600,001 to $800,000
79
10.7 %
$800,001 to $1 million
53
7.18 %
$1 million-plus
129
17.48 %
Not sure
37
5.01 %
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Copyright 2002, Bloomberg L.P.
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