Looks like some people are going to be working forever
After several years of shrinking purchasing power and low returns on their savings, many people have come to the conclusion that they'll have to work forever.
Looks like they might be right.
Despite some reports that working just a little bit longer — to age 70, no less — will allow most households to have adequate income in retirement, many people will still come up short, says the Employee Benefit Research Institute.
For approximately one-third of the households between the ages of 30 and 59, even working that long won’t be enough, EBRI maintains.
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The EBRI research stems from projections that large numbers of Baby Boomer and
Generation X workers are likely to run short of what they need to cover general
expenses and uninsured health care expenses in retirement.
“It would be comforting from a public policy standpoint to assume that merely working to age 70 would be a panacea to the significant challenges of assuring retirement income adequacy, but this may be a particularly risky strategy, especially for the vulnerable group of low-income workers,” says Jack VanDerhei, the author of the report.
But don't give up just yet. Working longer can still have a positive impact, EBRI suggests.
Its numbers suggests that nearly two-thirds of households aged 50‒59 would be considered “ready” for retirement at age 70, compared with 52 percent of those same households if they were to retire at age 65.
Do you see yourself as one of those who will be working well into their 60s? By choice or circumstance?
By Gordon Powers, MSN MoneyPhoto credit: Juho Tastula