Build Your Retirement Now Because Working Longer May Not Be an Option
When you feel like you don’t have enough money for retirement, the answer is simple: work longer. It’s not a fun decision, but that’s all you can do if you don’t have enough savings, right? It turns out that working longer is not a very realistic solution.
A recent Wells Fargo study found that while people plan to work longer when they don’t have enough savings to retire, that usually doesn’t work. In a press release, they said:
More than half (54%) of the workgroup over 60 say they will work “at least 70” to have enough savings to retire, compared with 40% in the 55-59 age group. However, longer work may not be the solution, as almost half of the retired respondents (49%) said they retired earlier than planned. Many did this as a result of circumstances beyond their control: 37% due to health conditions and 21% due to the employer’s decision. Only 7% retired earlier than planned because they had sufficient savings.
“Half of the retirees in this study retired earlier than expected for reasons beyond their control. People who think working longer – perhaps over 70 – is a retirement plan, understand that they may not be able to work longer. There are unforeseen circumstances, and it is really important for people to be aware of this, ”said Reedy.
The results are disheartening because if you’re playing catch-up, what else can you do? However, it is important to understand the reality of the situation in order to be as resourceful as possible when it comes to planning your own retirement. And if you’re young, it’s a good reminder to start saving early. Check out the survey results at the link below.
Wells Fargo Retirement Study: Several Years Matter | Wells Fargo via Business Insider