Among retiree respondents, the average total household savings, excluding household savings, was US$73,000, while workers aged 50-plus have saved an average of US$133,000. In addition, retirees had an average annual household income of US$58,000, significantly lower than workers’ aged 50-plus at US$87,000.

While about a third of workers aged 50-plus (37 per cent) and retirees (35 per cent) said they currently use a professional financial advisor, significantly fewer (23 per cent and 19 per cent, respectively) said they have a financial strategy for retirement in the form of a written plan.

The greatest fear among workers aged 50-plus was outliving their savings and investments (45 per cent compared to 32 per cent of retirees), while the greatest fear among retirees was that social security will be reduced or cease to exist in the future (39 per cent compared to 42 per cent 50-plus workers).

The survey also found two-thirds (66 per cent) of workers aged 50-plus said they expect to retire after age 65 or don’t plan to retire at all. In contrast, 58 per cent of retiree respondents retired before age 65. In addition, more than half (56 per cent) of retirees retired sooner than planned, but only 31 per cent of workers said they have a backup plan for income if forced into retirement sooner than expected.

“Retirees and pre-retirees have limited financial means,” said Catherine Collinson, chief executive officer and president of the Transamerica Institute and the TCRS, in a press release. “Both cohorts are susceptible to the turbulent economy and inflation. A harsh reality is that many lack the resources to cover the cost of a major financial shock. If a market downturn, personal health emergency or natural disaster strikes, many may find themselves in a dire situation.”