Americans nearing retirement continue to face mounting financial strain from inflation, unexpected emergencies and caregiving obligations, according to new findings from the Society of Actuaries Research Institute.
Its latest Retirement Risk Survey found that many retirees are leaving the workforce sooner than expected, while pre-retirees are increasingly grappling with financial shocks that threaten long-term savings goals. The biennial study surveyed Americans between ages 45 and 80 across a range of income levels.
“Retirement risk is shaped by both life events and long-term planning, so it's important to understand and carefully consider the different risks possible,” said Steve Siegel, ASA, senior practice research actuary at the Society of Actuaries. “A financial shock, caregiving need or sustained cost pressure can reshape someone's financial security—and is why retirement planning should account for the unexpected, not just best-case scenarios.”
The findings showed that 59% of retirees stopped working earlier than they had anticipated, while only 6% delayed retirement beyond their original plans. Among lower-income respondents, deteriorating health was identified as the leading reason for exiting the workforce ahead of schedule.
Pre-retirees appeared especially vulnerable to financial disruptions with nearly three in 10 respondents in that group saying they had experienced a family emergency that forced them to tap at least 10% of their savings, representing a sharp increase from the prior survey.
Inflation also remained a major pressure point for those still preparing for retirement, with respondents reporting that rising costs continue to weigh heavily on day-to-day finances and long-term planning.
Caregiving responsibilities emerged as another major concern and the survey found that 35% of pre-retirees and 29% of retirees believe it is somewhat or very likely they will require caregiving support in the future.
However, nearly half of those respondents said they have not taken steps to prepare for those needs.
At the same time, many Americans approaching retirement are already financially supporting family members. About one-third of pre-retirees reported providing financial assistance to adult children, while nearly 20% said they help support parents or in-laws — commitments that may limit their own ability to save.
The Retirement Risk Survey is part of the Society of Actuaries’ Aging and Retirement Strategic Research Program and has been conducted for more than two decades. The organization said the research is intended to help improve retirement planning strategies and better understand the financial risks facing retirees and workers approaching retirement.
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