The Employee Benefit Research Council says just half of respondents were confident they had enough money for retirement — a near record low for the annual survey. John Challenger is CEO of global outplacement firm Challenger, Gray & Christmas.
“There’s good cause for concern. 52 percent of those who are 55 and older have less than $50,000 in retirement savings. It’s just not enough.”
Many are likely to work past the traditional retirement age, negotiating greater job security in exchange for lower pay.
“But it also means that as they continue to work, because they from a financial standpoint just have to. The ladder is going to be more clogged, and younger workers may find it increasingly difficult to find their next jobs, the promotions that they’re looking for.”
Challenger says this could backfire. When the older workers do retire, employers will face a wider experience gap between those leaving and those who remain.