You read a lot these days about the so-called Great Resignation, as companies grapple with employees quitting at unusually high rates, primarily those in their early working years.
This trend does not necessarily apply to older workers, however, according to a survey released on Monday by the National retirement institute.
The survey found that a quarter of employer-sponsored pension plan members aged 45 and over say they have postponed retirement or have resigned themselves not to retire at all, due to the pandemic. Worse, 30% of participants aged 65 and over say the same thing.
The NRI survey found that plan members looking to delay retirement expect to work at least three years later, on average, than they thought before the pandemic.
As a result, 48% of these employees report feeling frustrated, 42% worried, 38% sad and 17% hopeless.
Unsurprisingly, these emotions have consequences for their professional life. Forty-eight percent say delaying retirement has had a negative impact on their mental health.
Thirty-nine percent said it hurt their morale at work and 23% said they were less productive.
Edelman Data and Intelligence conducted a survey over the summer of 1,000 plan members aged 45 and over who work full time and have access to a 401 (k), 403 (b) or 457 (b) plan. ) through their employer; 500 plan sponsors; and 300 advisers and consultants.
The role of the advisor
The NRS noted that older workers who are considering delaying their exit from the workforce do not know how their retirement savings will translate into retirement security.
Fifty-one percent of participants said they were worried about market volatility, 50% about managing their lifestyle and spending, and 48% about depleting their income in retirement.
According to Amelia Dunlap, vice president of national retirement solutions marketing.
Guaranteed lifetime income investment options for members are one solution 46% of plan members surveyed expressed interest in. Annuities can help employees increase their retirement savings with the confidence that they can generate income that will not run out in retirement.
“To get started, plan sponsors should work with their plan advisor or consultant to identify the option that best suits their plan members and their mix of benefits,” said Dunlap.
But even if employees do not have access to pensions at their place of work, they can still benefit from them in retirement. Here, the role of the advisor is to help him understand the many variations of annuities available in the market.