Retirement Expectations vs. Reality: If COVID-19 Did Not Impact Retirement Expectations Significantly, What Did?
Year: 2025
Type: article
Study design: Observational Study
Abstract: Using two data sets (a Prudential Financial Wellness Survey and the Health and Retirement Study), this study demonstrates that although there is generally a natural upward trend for older (age 50+) Americans to progressively delay their expected retirement age, this trend has no statistically significant relationship with the COVID-19 pandemic. The distribution of older Americans’ expected retirement ages is bimodal, often centered around two Social Security Benefit claiming ages – the early retirement age and full retirement age. However, actual retirement ages are more likely to follow a left-skewed distribution, whereby people appear to retire earlier than expected. The most significant factors that influence participants’ retirement decisions relative to expectations are health (+), wealth (-), age (+), change of marital status (+), mortality expectations (+), education levels (+), disability (-), and major illness diagnosis (-). Focusing on these factors can help the retirement benefits community explore strategies to mitigate the negative consequences of gaps between retirement expectations and reality. * “(-)” means the impact is negative, i.e., retire earlier than expected, and “(+)” means the impact is positive.
Source: Financial Services Review
Authors: Zhikun Liu, David Blanchett, Qi Sun, Naomi Fink
Language: English
Subfield: Demography
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408057213