Patterns in income source expectations for retirement among preretirees

Area of Science:

• Social Gerontology
• Retirement Planning Research
• Economic Sociology

Background:

• Retirement planning is a lifelong process influenced by financial literacy, resources, and life-course demands.
• Societal structures significantly shape available retirement funding options.
• Evolving economic and social frameworks prompt questions about the adaptability of retirement expectations.

Purpose of the Study:

• To investigate whether retirement income expectations among Michigan adults have adapted to changing social and economic structures.
• To identify distinct groups of preretirees based on their expected retirement income sources.

Main Methods:

• K-means cluster analysis was employed.
• Analysis utilized a 2010 survey dataset of Michigan adult preretirees.
• Participants were grouped based on their anticipated retirement income sources.

Main Results:

• Six distinct groups of preretirees with varying income expectations were identified.
• The majority of groups held expectations inconsistent with projected societal and resource changes.
• Preretirees with expectations aligned with societal changes were more likely to be White, male, and married.

Conclusions:

• Most Michigan preretirees' retirement income expectations do not align with anticipated future social and economic conditions.
• Demographic factors, such as race, gender, and marital status, correlate with expectations that are more aligned with societal changes.
• Further research is needed to understand the implications of these misalignments for retirement security.