Is 70 the new retirement age?
Almost half of Americans would need to work beyond age 65 to be financially prepared for retirement. But they won't have to work 'forever.'
This post comes from Glenn Ruffenach at partner site SmartMoney.
A new study from the Center for Retirement Research at Boston College looks at how much longer households have to work beyond age 65 to be prepared for retirement. The finding: More than 85% of households would be prepared to retire by age 70. Put another way, many Americans -- who now fear they will have to work "forever" -- could enter retirement after working from one to six years beyond age 65, depending on the size of their nest eggs.
"The results paint a different picture than recent opinion surveys, which find that people anticipate that they will have to work much longer," the report states. (Post continues below video.)
The study is titled: "National Retirement Risk Index: How Much Longer Do We Need to Work?" The National Retirement Risk Index measures the share of U.S. households "at risk" of being unable to maintain their pre-retirement standard of living in retirement.
Currently, in the wake of the financial crisis of 2008-2009, just over half -- 51% -- of today's working households are at risk, according to the center. But an important assumption in calculating that number is that people retire at age 65. If people were to work longer, the percentage at risk would fall. Thus the question, as outlined in the report: "At what age would the vast majority of households be ready to retire?"
By estimating target "replacement rates" (retirement income as a share of wage-adjusted lifetime income) and calculating the "age of readiness" (the age at which a household's projected replacement rate equals its target replacement rate), the center estimates that:
- 23% of U.S. households would need to work one to three years beyond age 65 to "attain readiness" for retirement.
- 17% of households would need to work four to six years beyond age 65.
- 9% of households would need to work seven years or more.
While the numbers suggest that "today's workers will need to work longer than their parents," the study concludes, workers today "are also healthier and better educated, generally have less physically demanding jobs, and can expect to live longer. In short, working longer is feasible for most households, and it does not mean working forever."
More from SmartMoney and MSN Money:
Such a bunch of BS................lower the god damn retirement age back to 62 where it belongs and keep it there! America needs to file a huge class action suit against the government "employees" who raised the minimum retirement age!\
Both parties need to quit stealing from the SS and Medicare funds.............neither one of these funds are 'general accounts' that they can dip their filthy theiving mitts into at will.
There is no such thing as retirement, anymore. The politicians have made sure of that. Of course, they'll be retiring and living very comfortably on the tax-free pensions they voted for themselves back in the `90's and early 2000's, while we, the citizens that they are supposed to be serving, slave away, because the politicians pissed away and squandered our money.
I'd like to know who is going to feed all of the aging illegals? All of them who earned anything extra sent it back to Mexico or the other countries that are their homeland. Yes, they do have a home to go back to. If we pay them Social Security, much of that money will be sent there too. I plan on voting out any senator of congress member who even admits they are in favor of this. It is wrong to take the retirement of the working people and give it to people that haven't earned it.
it would be hard for americans to retired early in the future. people needs to star saving now!! think if you can get retired in another country where thing are so much cheaper..
"Is 70 the New Retirement Age/"
More Hegalian Dialectic! Are you people F#cking kidding!
If people retire at 70 it's because they coundn't afford to sooner, not because it's sheik or in vogue.
People DIE at 70, not retire. This is the Banks and the Governments' way of saving debt by not having to pay it.
Making retirement "Unaffordable".
Some people die at 70 from cancer, auto accidents, mountain climbing accidents, suicide, and liver damage from too much alcohol. Most people these days are alive and well and able to work in their 70s or even their 80s.
And the word you wanted is "chic," not "sheik." Look it up!
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