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©2023 EBRI/Greenwald Research Retirement Confidence Survey
5%
6%
11%
9%
23%
12%
33%
13%
20%
9%
26%
13% 13%
6%
Under 55 55-59 60-61 62-64 65 66-69 70 or Older/
Never Retire
Workers (n=958) Retirees (n=1,115)
Median Age
Workers 65
Retirees 62
Figures and n-sizes presented exclude those who answered “Don’t know”, said they never worked, or refused to answer.
Source: Employee Benefit Research Institute and Greenwald Research, 2023 Retirement Confidence Survey.
Figure 1
Worker Retirement Age Estimates vs. Retiree Retirement Ages
Realistically, at what age do you expect to retire?/ How old were you when you retired?
2023 RCS FACT SHEET #2
EXPECTATIONS ABOUT RETIREMENT
Many workers continue to say they are behind in their retirement preparations,
including saving for retirement. Consequently, what sources of income do workers
expect to receive in retirement? How do workers’ expectations align with retirees’
experiences?
Postponing Retirement
As in prior years, there is a big gap between when active workers expect to retire and
when retirees say they actually did: Workers continue to report an expected median
retirement age of 65, while retirees report they retired at a median age of 62 (Figure 1).
Workers are notably more likely to say they expect to retire at ages 70 or older. One in
three (33 percent) workers expect to retire at 70 or beyond or not at all, while only 6
percent of retirees report this was the case. Just 11 percent of workers say they plan to
retire before age 60, compared with 33 percent of retirees who report they retired that
early. Twenty percent of workers say they plan to retire between the ages of 60 and 64,
although 35 percent of retirees say they retired in that age range. This difference
between workers’ expected retirement age and retirees’ actual age of retirement
suggests that a considerable gap exists between workers’ expectations and retirees’
experiences.
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©2023 EBRI/Greenwald Research Retirement Confidence Survey
52%
40%
48%
40%
36%
45%
39%
40%
38%
51%
41%
45%
47%
50%
48% 48%
46%
47%
46%
43%
53%
42%
48%
52%
47%
48%
50%
52%
40%
49%
46%
43%
40%
48%
46%
48%
46%
49%
3% 3%
7%
5%
6%
5% 5% 5% 5%
4% 4%
3%
6%
5%
3%
6%
6%
6%
4%
1991 1992 1993 1994 1995 1996 1999 2000 2002 2003 2005 2006 2008 2010 2011 2013 2015 2017 2020 2021 2022 2023
Earlier Than Planned
About When Planned Later Than Planned
Figure 2
Retirees’ Experiences of Retiring Earlier, Later, or When Planned
Source: Employee Benefit Research Institute and Greenwald Research, 1991–2023 Retirement Confidence Surveys.
Did you retire earlier than you planned, later than you planned, or about when you planned?
2023 Retirees n=1,217
The RCS has consistently found that a large percentage of retirees leave the work force
earlier than planned (46 percent) (Figure 2). In the 2023 RCS, many who say they retired
earlier than planned did so because of a hardship, such as a health problem or
disability (35 percent). Another 31 percent say that they retired due to changes at their
company, but a larger share say they could afford to retire earlier (35 percent).
1
This
tendency to retire earlier than planned may explain the considerable gap that exists
between workers’ expectations and retirees’ experiences.
As one might expect, workers who are not confident about their financial security in
retirement plan to retire later, on average, than those who express confidence. For
example, 51 percent of workers who are not confident in their retirement financial
prospects say they either will not retire or do not know when they will retire, compared
with 26 percent who are very confident.
Working for Pay in Retirement
Nearly 3 in 4 workers (73 percent) plan to work for pay in retirement, compared with just
30 percent of retirees who report they have actually worked for pay in retirement. In
fact, the RCS has consistently found that workers are far more likely to plan to work for
pay in retirement than retirees are to have actually done so (Figure 3).
Retirees working for pay in retirement who report why they are working for pay often
cite a major or minor reason that is positive for doing so, such as they continue to work
because they want to stay active and involved (90 percent), they enjoy working (81
percent), or a job opportunity came along (51 percent). However, they report that
1
Retirees could have retired for more than one reason.
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©2023 EBRI/Greenwald Research Retirement Confidence Survey
73%
74%
80%
72%
73%
73%
79% 79%
80%
74%
72%
70%
73%
27%
32%
34%
27%
23%
27%
29%
34%
28%
27%
30%
27%
30%
1999 2004 2009 2014
2015
2016 2017 2018 2019 2020 2021
2022
2023
Workers Retirees
financial reasons also play a role in that decision, such as wanting money to buy extras
(71 percent major or minor reason for working), to avoid reducing their savings (59
percent), needing money to make ends meet (42 percent), a decrease in the value of
their savings or investments (32 percent), or keeping health insurance or other benefits
(13 percent).
2
Sources of Retirement Income
While almost all retirees (94 percent) report that Social Security provides a source of
retirement income for them and their spouse’s retirement (64 percent say it is a major
source of income), workers and their spouses continue to expect to draw their
retirement income from a wide variety of sources.
Eighty-eight percent of current workers expect Social Security to be a major or minor
source of income in retirement, but they believe that personal savings will also play a
large role, with 84 percent saying they anticipate receiving retirement income from a
workplace retirement savings plan, 75 percent from an individual retirement account,
and 78 percent from personal retirement savings and investments. Seventy-three
percent expect work for pay to provide income in retirement, 64 percent expect to
receive income from a defined benefit or traditional pension plan, and 54 percent
expect to receive income from a financial product that guarantees monthly income for
life. In contrast to workers’ expectations, retirees are less likely to rely on any form of
personal savings or on employment for their income in retirement (Figure 4).
2
Retirees could have worked for pay in retirement for more than one reason.
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©2023 EBRI/Greenwald Research Retirement Confidence Survey
To what extent do you expect the following will be/ is the following a source of income in retirement?
Workers planning to retire n=1,153; Retirees n=1,217
Figure 4
Worker Expectations for Sources of Income in Retirement vs.
Retirees’ Actual Income Sources
Source: Employee Benefit Research Institute and Greenwald Research, 2023 Retirement Confidence Survey.
Defined benefit or traditional
pension plan
Personal retirement savings
and investments
Individual retirement
account
Work for pay
Social Security
Workplace retirement
savings plan
33%
67%
54%
19%
28%
5%
35%
22%
36%
28%
32%
37%
22%
11%
55%
27%
30%
30%
45%
18%
40%
35%
42%
41%
32%
21%
32%
18%
88%
94%
84%
49%
73%
23%
75%
57%
78%
69%
64%
58%
54%
28%
Worker
Retiree
Worker
Retiree
Worker
Retiree
Worker
Retiree
Worker
Retiree
Worker
Retiree
Worker
Retiree
Major Source Minor Source
A product that
guarantees monthly income
###