Because of financial reasons, 45% of workers in poor health are planning to delay their retirement, a survey from Towers Watson found.
This is the largest group of those who said they are planning to work longer than expected. The next largest is older workers.
When asked why they are considering delaying retirement, 68% of older workers survey gave keeping their health care coverage as one of the reasons, while 62% said the higher cost of health care.
Almost six in 10 said it was because the value of their 401(k) plan declined in the last few years. Overall, four in 10 workers of all ages said they plan to delay their retirement.
“The economic crisis has had a deep effect on employees’ attitudes toward retirement and especially on risk,” said David Speier, a senior retirement consultant at Towers Watson. “Despite the signs that some employees are saving more, spending less and reducing debt as the economy stabilizes, workers continue to have a fear that they won’t be able to afford retirement."
Nearly 63% of respondents said they are actively paying down their debts to improve their financial situation; in a similar survey in early 2009, this number was just 33%.
“Despite efforts to improve their household balance sheet, it appears that older workers are also coping with their current situation by delaying retirement, reducing their expectations and possibly settling for a lower standard of living in retirement,” said Kevin Wagner, a senior retirement consultant at Towers Watson. “Unfortunately, the groups of employees that feel most compelled to take these steps are often those that can least afford to—older workers and those in poor health. Today’s challenges of retirement and health care affordability are creating a new set of ‘hidden pensioners,’ a group that otherwise is ready to retire but cannot afford to do so.”
