Top 5 Reasons Why Most Workers Are Fearful of Retirement
Written by
Brooke Barley
Edited by
Gary Dudak
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If you’re considering putting off retirement, you’re far from the only one. According to a LiveCareer survey, 82% say they have considered delaying retirement for financial reasons, with 92% of workers saying they’ll probably have to work longer than they had planned. In fact, 61% of those surveyed responded that they fear retirement more than death itself.
Why exactly are so many workers afraid to retire? If you’re thinking about retiring, you probably know a couple of reasons, but here are the top reasons those surveyed gave for wanting to put off retirement.
The Rising Cost of Long-Term CareÂ
The survey revealed that more than half (59%) of workers are afraid to retire because of how much their healthcare will cost. Since 39% of workers already have medical debt, it’s hard to imagine retirement — a time when most will absolutely need medical care — and not get worried about the price.
According to Fidelity, the average 65-year-old couple will spend $12,200 during just their first year of retirement. According to the survey, 27% of workers have between $10,000-$50,000 saved for retirement. Medical costs alone could wipe out their savings.
Fearful of Making Poor Investment Decisions and Losing Retirement Funds
Investment strategy is unfortunately not taught in schools, leaving many people to figure this out for themselves. When you don’t have a ton to invest in the first place, it’s tough to essentially gamble on funds that don’t turn out to be lucrative. That’s why 52% of those surveyed said they fear they’ll make one bad investment decision and lose all their money.
Disconnection From Society
When you aren’t interacting with coworkers day-to-day, you might feel like you’ve lost connection with the outside world. This can cause a feeling of disconnect, and it’s why 48% of workers don’t want to retire according to the survey.
It can be tough to look forward to retirement when you like your coworkers and the conversations you have with them.
Struggle To Adopt a New Routine or Lifestyle
Many people derive a sense of purpose from their work and their routine. With retirement, the life associated with working is suddenly taken away. This is concerning for 46% of workers.
They might feel they don’t have a lot of hobbies or friendships outside of work, and will struggle to find that same sense of purpose they found when they were working.
Nervous About Maintaining Desired Standard of Living in Retirement
Most likely, income will drop in retirement. That’s a scary thought for 45% of workers, as they’ve become accustomed to a certain lifestyle. Having to adjust to a way of living that doesn’t afford the same luxuries later in life can be very jarring.
The survey also showed that 44% of workers have credit card debt, and 41% have car loans. Seeing a decrease in income can make it feel impossible to pay off debt, and make it hard to make financial moves that are dependent on credit score. This might be why 29% of workers plan on retiring from their current job, but still getting a part-time job to supplement their income.
Editor’s Note: Data sourced via 2024 Live Career Retirement Survey.
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