Benefits & Compensation News

Working till 70 won’t guarantee adequate retirement funds

First the magic number was 62, then it was pushed back to 65 and then many experts said that working until the age of 70 would guarantee a comfortable retirement. But will that delay be enough?

According to new research, the answer is “no” — at least for many American households.

Not enough for health care, general expenses

A recent study by the Employee Benefit Research Institute (EBRI), a nonprofit organization, found that one-third of U.S. households between the ages of 30 and 59 won’t have adequate retirement funds — even if members of the household continued to work until they were 70.

Based on projections, the EBRI study suggests that a large number of Baby Boomer and Gen. X employees are likely to fall short in terms of what they’ll need to cover uninsured healthcare costs and general expenses in retirement.

These findings call into question the idea that simply putting retirement off will prove to be an effective strategy.

But the EBRI study did conclude that more U.S. households (64%) between the ages of 50 to 59 would be ready to ready by the age of 70, compared to the 52% of the households that would be ready by the age of 65.

As we mentioned previously, Fidelity Investments recently unveiled a series of age-based retirement savings benchmarks to help individuals keep track of what they should be saving as they move closer to retirement.

Pass these along to employees to help them see if their retirement-planning is on target, or what it’ll take for them to catch up if they’ve fallen behind.

 

 

 

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