Future Retirees Expect to Work Longer

May 18, 2007 (PLANSPONSOR.com) - Nearly three-quarters of workers say they plan to continue working on a part-time basis after retirement, a far greater number than the 22% of current retirees that now rely on part-time income, a recent Gallup poll found.

Of the three-quarters who plan to continue working, 21% say that part-time work will be a major source of retirement income, while more than half (52%) say it will be a minor source, according to a press release on results of The Gallup Personal Finance poll.

The Gallup data adds to the mounting evidence that individuals no longer see retirement as a definitive point in which they leave the workforce. Barely half (53%) of those still in the workforce expect to have enough money to live comfortably in retirement and four in 10 say they doubt they will have enough, the release said.

One reason workers fear they will not be financially prepared for retirement is because of the precarious state of the Social Security system. More than half of current retirees cite Social Security as a major source of income, compared to 27% of non-retirees who foresee the system as a major income source.

Far more non-retirees than retirees plan to rely on 401(k), IRA, Keogh or other retirement savings accounts as a source of income in retirement, with 81% of non-retirees citing these as a sources of income, compared to only 51% of current retirees.

According to the poll, the average age at which current retirees stopped working is 60. Nearly 70% of current retires retired before turning 65, while only 27% retired at 65 or older. The average age at which the nation’s pre-retirees expect to retire is 64. A majority (57%) of non-retirees say they will retire at 65 or older.

Results from the full Gallup poll are here .