Earlier this year, Bank of America conducted a study entitled the Merrill Lynch Affluent Insights Survey. This study, which began in 2009, focuses on a variety of subjects each year, with an overall goal to provide a bit of insight into the financial and retirement needs of the American public. For 2012's survey, they asked questions regarding the current state of retirement and Social Security.
Mark 2022 on Your Calendars
One focus of the survey conducted by Bank of America was regarding Social Security. As you may have heard, the Social Security is currently being threatened. This is because the gap separating the amounts being collected and the amounts being paid out is widening. At some point, the collected amounts will overcome the checks being sent out. According to estimates, this will happen in the year 2022. Once that happens, it is possible that the amounts that people receive (which are already very low) will decrease. This is why many people believe that changes must be made to the system.
An Older Workforce
Statistics from 1993 show that 29% of the United States' workforce was older than 55, according to the Labor Department. Last year, their newest survey showed that the number had risen to 40%. These results demonstrate that an increasing number are not retiring simply because they reach a certain birthday. Yes, this is how things worked in the past, but the American sentiment has changed. Now people are retiring not because of their age, but simply because they are ready and/or feel that it is the right time.
Survey Backs Up Older Workforce
Bank of America's survey backed up the above sentiment. The results show that, of the individuals surveyed who were under 62 years of age and had not yet retired, 62% were not planning to retire early. Instead, a number of them planned to put off their retirement for as long as possible, both for financial and personal reasons. In addition to this, the survey also showed that not quite 15% of those over 50 stated that age would be a main reason concerning their decision of when to retire. These results show that, for one reason or another, the average American worker is more than willing to keep working, and that number is likely to continue increasing.
Affluent People Say "Raise the Retirement Age"
The study from Bank of America shows that affluent individuals believe that the retirement age should be raised in order to affect change to the current Social Security outlook. In fact, of those with at least $250,000 in assets, 59% felt this way. If the retirement age was increased to match our increased life expectancy, it could fix the problem of the widening gap between the amount being collected and the amount being paid to retirees, at least for quite a number of years. The only thing missing from the survey was a specific age that respondents would consider having the retirement age raised to, though adding on at least a few years would probably be acceptable.
Different Study Shows Concern For the Deficit
Toward the end of last year, Wells Fargo had its own survey completed. The results showed that 47% of respondents with assets totaling at least $100,000 believe that a cut in benefits, whether from Social Security or Medicare, would help lower the U.S. debt. However, the study also indicated that only 23% of a person's retirement funds would come from Social Security. This indicates that other sources of continuing income during retirement are necessary, despite concerns of the deficit.
Source: http://firstsecurityfinancialshow.com/blog/bid/154640/Affluent-Say-Raise-Social-Security-Age
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