AXA Equitable Study Shows New Retirement Reality – People Will Work Longer

AXA Equitable Study Shows New Retirement Reality – People Will Work Longer

AXA Equitable, December 16th, 2010

AXA Equitable Life Insurance Company released today results from its Retirement Reality Study – one of the largest global surveys to poll workers and retirees on numerous Financial topics, including their views on and preparations for retirement.

Results from AXA’s latest survey show that today’s working world anticipates retiring much later than previous generations. The average age of retirees polled around the world is 57 years old. However, current workers anticipate retiring at 61 – a full 4 years later.

In addition to working longer, people in most countries are expecting a lower standard of living in retirement. Globally, 43 percent of workers and 30 percent of retirees believe their retirement income will be insufficient. Working people know they need to prepare for retirement, with 46 percent saying they have started to prepare and an additional 37 percent intending to start later. 

“Our survey shows people realize they will be increasingly dependent on personal savings in retirement but aren’t ready,” said Andrew McMahon, senior executive vice president of AXA Equitable and president of its Financial Protection & Wealth Management business. “Clearly individuals are coming to terms with the reality that they won’t be able to retire until many years after they hoped, unless they prepare successfully.”

Americans Are Getting It Right at a Younger Age

Americans are among the top nations surveyed to say that they have already started their retirement planning. Among U.S. Workers, 72 percent said they have started saving for retirement, compared with a global average of 46 percent. Not only has a large percentage of Americans started preparing for retirement, they are starting younger than people in other countries. U.S. workers are among the youngest to say that they have started to prepare for retirement; the average age in the U.S. is 31, compared with the worldwide age of 34.

Although Americans seem more prepared than their counterparts in other countries, the anticipated retirement age is still among the highest of any country. The average American anticipates retiring at 64, three years older than the survey average of 61, and six years older than their desired retirement age of 58.

This is the fifth global survey released by AXA Equitable and its parent, AXA Group, and is part of the company’s continued effort to enhance its understanding of the retirement issues.

Additional survey findings include:

The main triggers to start saving for retirement in the U.S. are:

Employer contributions to a defined contribution plan

Reaching a key age

Advice from family or friends

Read more: Pension