Millennials expect to retire earlier than older generations. A survey of more than 2,700 Americans found that millennials have the earliest target date for retirement, followed by Gen Z. Gen X and baby boomers expect to retire at an older age, according to a survey conducted by The Harris Poll on behalf of Northwestern Mutual.
Millennials indicated they expected to retire at 61.3 years old, on average, while Gen Z aimed for 62.5, Gen X for 63.2 and baby boomers for 68.8 years old. Even with the economic impact of the coronavirus pandemic, just three in 10 Americans changed their retirement timeline, according to the survey.
"Millennials appear to prioritize retirement earlier on,” said Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual, in a statement. “Other generations may be quicker to extend their retirement timelines outward. Much of this depends on individual circumstances, of course, but it also underscores that a long-term financial plan has to factor in the unexpected and be nimble enough to adjust course."
Twenty-one percent of Americans across all ages expect to work past the age of 65, with 55% of those stating those additional years of working are because of choice. Many of those workers like their jobs and want to continue working in them, according to the survey.
"While the nature of retirement continues to change, it's encouraging to see more people working past the age of 65 out of choice and not necessity," added Mitchell.
The online survey was conducted from the end of June through the beginning of July 2020.