How the Great Resignation could affect retirement savings

The movement in the labor force is affecting people’s retirement savings, according to the new 2022 Retirement Risk Readiness Study from Allianz Life.

Fewer people said they retired earlier than expected in 2022.

While 68% of retirees said they had left the workforce earlier than expected in 2021, only 42% of retirees said the same this year. Fewer said they retired because of unexpected issues – more people retired on their own terms.

Many people who are still working anticipate that they will change jobs in the near future. Changes in employment could have a severe effect on their retirement security.

Around a third of people still in the labor force said they are likely to take a new job this year, either with a new company or by going into business for themselves.

A job change provides a good opportunity to meet with a financial professional to review retirement goals as those changes could affect both short- and long-term financial planning. Needing to reduce the amount saved for retirement, or stopping saving for retirement completely, were among the top worries around pursuing a new job.

If you’re thinking about making a job change, or have made one recently, set up time to chat with your financial professional about how to take the next step while still managing risks to your retirement savings.