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Thirty-four percent of retirement savers worldwide and 37% in the United States expect to work at least part time after they retire, according to a study released Monday by T. Rowe Price.
The global research also found economic and financial uncertainty among savers:
● 50% expect a recession by mid-2026.
● Inflation is a top concern, as are geopolitical events and interest rates.
● Only 27% are confident that they could withstand a financial shock while retired.
● 17% believe they will run out of money in retirement.
The study is based on a survey conducted during the summer among 7,030 employed adults in the United States, Australia, Canada, Japan and the United Kingdom, including 3,001 Americans. The respondents either actively contribute to or are eligible to do so to a defined contribution or similar account-based workplace retirement plan.
Survey Findings
The highest level of economic pessimism in Japan and Canada, the survey found, where 62% and 56% of respondents said they foresee a recession. In contrast, less than half of savers in the United States, Australia and the U.K. are bracing for a near-term recession.
Retirement optimism is low across the globe. Only 31% of respondents said they expect to live as well or better in retirement, with pessimism most pronounced in Japan and Australia, and least in the U.K.
Women, especially those who are single, reported significantly lower retirement confidence than men. This was most notable in Australia, where 31% of men, but only 15% of women, reported high confidence.
A third of global retirement savers purported to be excited about retirement. This optimism, the survey found, correlates with stronger financial footing: Excited savers are more likely to be higher earners and married, and twice as likely to report progress toward their financial goals.
T. Rowe Price’s study showed that three of the four most relied-upon sources of advice for global savers are connected to the workplace, with the highest reliance reported in the United States:
● Company that manages workplace retirement plan(s) — 25%
● Website/materials by workplace retirement plan administration — 22%
● Tools/calculators/education via workplace retirement — 22%
Japanese respondents, in contrast, were likelier than those in other regions to self-direct.
Meanwhile, human advisors remain essential, according to the survey, tied at 25% with the retirement plan recordkeeper as the most relied-upon source of advice worldwide.
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