September 28, 2007

More than half of rural Nebraskans think the ideal retirement age is somewhere between 55 and 64, but most don't expect to retire that soon, according to the Nebraska Rural Poll. Even when they do retire, the poll shows, many rural Nebraskans expect to continue working in some fashion, some because they need to for basic income or health insurance, but others because they want to remain active.

The 12th annual University of Nebraska-Lincoln poll asked 6,400 respondents in Nebraska's 84 rural counties 13 questions about their retirement plans. Results are based on 2,680 responses.

Poll organizers note that an aging population is one of the key demographic trends under way in rural Nebraska.

"An aging population presents many opportunities and obstacles that will need to be addressed in the near future," David Peters, UNL rural sociologist, wrote in a report summarizing poll results. About 55% of respondents said 55-64 was an ideal retirement age, with nearly 30% saying 65-70. But only one-third who endorsed a younger retirement age expect to have enough income to retire that early.

"People want to retire somewhat younger ... but they don't think they'll be able to do it," Peters said.

Sixty-nine percent of respondents expressed concern about having enough income in retirement. Younger respondents actually are more worried about outliving their income than older respondents, the poll shows.

Bruce Johnson, UNL agricultural economist, speculated that younger Nebraskans may have more doubt about whether Social Security income will be available when they retire. He points to the poll's finding that while 79% of respondents who are 65 or older — some of whom already are retired — view Social Security as a major income source, only 39% of under-40 respondents are counting on it. Overall, 58% of respondents see Social Security as a major source of retirement income. Other sources of income expected were personal savings/investments, 53%; 401(k) or other retirement accounts, 51%; and employer-sponsored pensions, 37%.

About 40% of rural Nebraskans expect to continue working after they retire, according to the poll.

"Being retired to a rural Nebraskan is not necessarily the same as not working," said Randy Cantrell, another UNL rural sociologist on the Rural Poll team. Younger respondents tend to cite the need for income as a reason to keep working, while older respondents, including current retirees, tend to see work as a way to remain physically and mentally active, Cantrell said.

Some differences in the motivation men and women cite for post-retirement work are significant, he added. Women are more likely than men to say they'll need to work after retirement for basic income, at 68% and 56%, respectively. They're also more likely than men to cite a need for health insurance as motivation to keep working.

That may be because women are less likely than men to have jobs with a good retirement plan and are more likely to outlive their spouses."Women are more likely to say they'll need the money — and are probably right, unfortunately," Cantrell said.

In another key Rural Poll finding, only about 10% of rural Nebraskans plan to leave the state when they retire, but many are uncertain of their plans. Not surprisingly, younger respondents were less certain than older ones on their plans, with 65% of respondents in their 20s saying they don't know where they'll live after retiring. As rural Nebraskans get older, they grow more certain about where they'll live — and become less likely to want to leave Nebraska.

Factors affecting rural Nebraskans' decisions about where to live in retirement include: closeness to family, mentioned by 80%; closeness to health care, more than 70%; and cost of living, 70%.Among respondents planning to leave Nebraska, 75% cited a desire to find outdoor and fitness activities. Seventy percent said they might move to urban Nebraska in search of cultural and entertainment activities. Also, about three-quarters said they'll be in search of a different climate.

Communities that want to keep retirees, or attract them from elsewhere, can't do much about family considerations and climate, but may be able to address other issues to become more appealing, Peters said. "There are steps that state and local groups can take to increase the availability of outdoor and fitness activities and to lower the costs of living as a retiree in Nebraska," Peters wrote in his report.

Other findings:

• Younger respondents are more optimistic than older ones that their quality of life will improve in retirement, with up to 50% expressing that view. Up to 70% of older rural Nebraskans expect life to remain about the same. Fewer than 20% expect life to worsen.
• About 70% of respondents plan to spend more time with spouses and friends in retirement, and a similar proportion plans travel and recreational activities. Fewer than 20% plan to spend their free time on volunteer activities.

The findings are summarized in a series of reports that can be found at http://cari.unl.edu/ruralpoll/report07.shtml.

The Rural Poll is the largest annual poll of rural Nebraskans' perceptions on quality of life and policy issues. This year's response rate was about 40%. The margin of error is plus or minus 3%.

The university's Center for Applied Rural Innovation conducts the poll in cooperation with the Rural Initiative, the Department of Agricultural Economics, the Department of Sociology and the Institute for Ethnic Studies with funding from UNL Extension and the Agricultural Research Division in the Institute of Agriculture and Natural Resources.

Dan Moser
IANR News Service