This July’s Deft Research 2010 Age-in Study highlights changing trends in retirement plans. Many of the 2259 age-ins we surveyed plan to continue working till age 70, as they try to maintain their lifestyle, while unemployed age-ins and those with health concerns are opting for early retirement at age 62, and a lifetime of smaller Social Security checks. Many past retirees have relied on private pensions and Social Security benefits based on high-paying jobs. Current Social Security retiree benefit levels reflect this pattern. But future benefit patterns will change, as more age-ins retire from lower paying jobs, or delay retirement.

A full 46% of 2010 Age-in survey respondents plan on taking, or are already taking early Social Security at age 62, a sharp increase from 2009.

Map by Deft Research, data from socialsecurity.gov October 2009 Beneficiary Report

Implications

Future Medicare-eligible consumers are more likely to be either early retirees on a very limited income, or workers who plan to continue working till age 70. While some late retirees will rely on commercial health insurance obtained through their employer, a growing class of working elderly will be in the market for individual coverage, and willing to pay for richer health care benefits, especially benefits that provide them with convenience. Leaner benefit plans will likely also grow in market share and be well received by modest income households. Richer physician and hospital benefits provided by PPOs, Plan N, and Plan F will continue to attract higher income consumers, but individual working consumers are likely to be active shoppers that demand value for their health insurance dollar

To discuss the THE AGE-IN STUDY 2010,
contact:
George Dippel at 262/697-1370
or gdippel@deftresearch.com

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