Can’t say we’re surprised: Employees are planning to postpone retirement. They’re trying harder to become debt-free. And they’d be willing to hand over more of their pay if it means better retirement and healthcare benefits.
A recent survey from HR consultant Towers Watson found that 40% of workers are planning to retire later than they were two years ago.
Older workers and those in poor health comprise the largest percentage of employees planning to delay retirement.
Of those who described themselves as being in poor health, 45% plan to postpone their retirement. When asked why they are choosing to retire later, more than two-thirds (68%) of older workers said to keep their health care coverage, while 62% said the higher cost of health care.
Six in 10 older workers (61%) blamed the decline in the value of their 401(k) plans.
Getting out of debt
The survey found that nearly two-thirds of respondents (63%) are actively paying off their debts to improve their financial situation, nearly double the number (33%) in early 2009.
More than half (54%) are cutting back on their daily spending, while roughly one-third (34%) are increasing their monthly savings, compared to only 19% in early 2009.
a majority of workers (56%) would be willing to pay a higher amount from their paycheck to ensure a guaranteed retirement benefit, compared with 46% in February 2009.
Additionally, 54% of workers would be willing to pay a higher amount from their paycheck to ensure access to health care benefits if they retire before they’re eligible for Medicare.
For more information about the survey, go here.