33% of Respondents Working Second Job or Side Gig to Boost Retirement Savings
DALLAS, Nov. 1, 2023 /PRNewswire/ — A consumer sentiment survey by ScoreSense® reveals that, while full Social Security benefits start at 67, over a quarter of respondents are unsure when they will be able to retire. Only 30% think they will retire on time, and 18% think they will retire later than age 67. The survey by ScoreSense, a credit score monitoring product, also found that those ages 40-49 were significantly less confident in being able to retire early as compared to other age groups. Surprisingly, to boost retirement savings, one out of three respondents took a second job or side gig, which was noticed across all age groups. The survey was conducted with consumers between the ages of 40 and 79, and who have yet to retire.
The survey coincides with ScoreSense’s Q3 Market Report, which examined year-over-year (Q3 2022 vs. Q3 2023) consumer spending habit data. The number of delinquent credit accounts (past due for more than 30 days) reached a three-year high, jumping up by 10% in Q3 2023 from Q2 2023. High interest rates continue to deter consumers from applying for and opening credit accounts. While credit balances remain high as consumers struggle to pay off their credit cards, there is less credit usage compared to last year as consumers are tightening their spending habits.
Credit card and medical debt were the leading type of debt survey respondents think could delay their retirement.
“In the midst of a tough inflationary economy, it’s not surprising that many Americans are not where they want to be on their retirement goals,” said Carlos Medina, senior vice president at One Technologies, LLC, which offers ScoreSense. “What I find disturbing from our survey is the large number of people who don’t know what they have or what it will take to retire. While it’s never too late to save for anyone, young people need to create retirement savings accounts that can really blossom over time.”
Survey Findings:
One out of three respondents that were unsure when they would be able to retire or think they would retire after the age of 67 believe it would be an additional 1-5 years after the age of 67 before they could retire.
If a recession occurs within the next two years, 40% of respondents think it would delay their retirement plans. Those between the ages of 40-59 were more likely to think the recession would delay retirement as compared to those ages 60-79.
Credit card debt (30%) was the leading type of debt respondents think could delay their retirement followed by medical debt (29%). Those between the ages of 40-49 are anticipating these two types of debt to affect their retirement more as compared to other age groups. The delay in retirement for those of ages 70-79 could be due to still dealing with credit card debt (29%), mortgage loans (28%), and medical debt (27%).
About 40% of respondents do not know the approximate balance of their retirement accounts. Approximately half only know how much they would need to comfortably retire. Those between the ages of 50-59 (37%) were significantly less likely to know how much they would need to retire as compared to other age groups.
To fund retirement, Social Security (65%) is the leading method followed by savings in a bank account (44%). Those ages 70-79 are significantly more likely to also include stock and bond investments as a method as compared to other groups. For those ages 40-49, a 401(k) account is more heavily relied upon as compared to other groups, while ages 60-69 have more mention of an IRA account as compared to other groups.
70% of respondents have a 401(k) with an employer, with 56% mentioning their employer matches a percentage of their contributions. Over 60% are still contributing to their accounts. One out of four respondents has increased contributions within the past 12 months.
For those with an IRA or an independent 401(k) account only (i.e., they don’t have an employer-provided 401(k) plan), only 29% are contributing to their accounts. This group also has more respondents (43%) who say they stopped contributing to their accounts as compared to those with an employer-provided 401(k) (12%).
To boost retirement savings, 30% took a second job or side gig. Downsizing a home (20%), moving to a different city or state (19%), or selling off assets (19%) were also cited. Those ages 60-79 were more likely to downsize their homes compared to those between 40-59.
23% of respondents said they lowered their contributions to their retirement accounts in the last 12 months to cover higher household expenses due to inflation.
About One Technologies
One Technologies, LLC, harnesses the power of technology, analytics, and its people to create solutions that empower consumers to make more informed decisions about their financial lives. The firm’s consumer credit products include ScoreSense®, which enables members to seamlessly access, interact with, and understand their credit profiles from all three main bureaus using a single application. The ScoreSense platform is continually updated to give members deeper insights, personalized tools, and one-on-one customer care support that can help them make the most sense of their credit. One Technologies is headquartered in Dallas and was established in October 2000. For more information, please visit onetechnologies.net.
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SOURCE ScoreSense
