Will you work past retirement age?

Wells Fargo hired Harris Interactive Inc. (HPOL) to conduct a nationwide phone survey about retirement. During August and September 2011, they surveyed 1,500 consumers between 25 and 74 years old.  The responders’ household income or assets ranged from $25,000 to $100,000. They planned to work longer to have enough money in retirement.

Highlights

76 percent of responders said it is more important to reach a specific dollar amount before retiring, while 20 percent said it is more important to retire at a certain age regardless of savings.

74 percent expect to work in retirement, which was broken down into 39 percent who will work in retirement because they need to and 35 percent who will work because they want to.

25 percent will need to work until age 80 due to lack of savings.

68 percent were not confident in the stock market to invest in it for retirement.

If they were given $5,000 to invest, 45 percent would buy a certificate of deposit (CD) and 50 percent would invest in stocks or mutual funds.

Responders saved a median of $25,000 toward retirement and estimated needing a median of $350,000 to support themselves during retirement.

42 percent expect to receive a pension or already receive one.

They expect to withdraw an average of 18 percent from savings each year in retirement.

50 percent were confident they saved enough for retirement.

“Eighty is the new 65,” Joseph Ready, executive vice president of Wells Fargo Institutional Retirement & Trust.  “It’s a real sea change.”

The economy has impacted retirement plans for many.  Some are unemployed or underemployed and had to dip into savings and/or retirement accounts.  Others haven’t been able to save enough for retirement, because of other debts. The good news is that people are living longer and are in better health, so they can continue to work.

Credit Damage Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.

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This post was written by John Ulzheimer