Thirty percent of Americans wait unit they reach 80 to retire
“It is so tough for Americans to save for retirement that the answer seems to be to wait to retire,” said Joe Ready, director of Wells Fargo Institutional Retirement and Trust. Overall, 70% of respondents plan to work during retirement, many of whom plan to do so because they simply won’t be able to afford to retire full time. But working well into your 70’s, 80’s or even 90’s, isn’t always realistic, said Ready. Nearly three-quarters of those who plan to work into their 80’s say their employer won’t want them working when they’re that old, for example. Other roadblocks, like health issues, could arise as well. Those who are unable to work as long as they intend could therefore face a very grim reality. In fact, more than one-third of Americans could wind up living at or near poverty in retirement, the survey found.
Most of us don’t expect to live forever and indeed we also expect our income to be lower than when we were working, but most Americans would have to live on 50% of their current income that would put those retirees at or near the poverty level – so they wait to retire and they continue to work.
“Too many Baby Boomers felt like they were going to be healthy forever and they put off their retirements savings until “tomorrow””, offers Fous, an author on retirement living. “Paying bills and surviving made most Americans live day to day and they never got ahead on savings.” If there is good news it is that these baby boomers feel responsible for funding their own retirement – and they keep working. Some have re-invented their careers after 65.
Social Security will only take you so far. If today’s retiree was able to pay off their home mortgage they are a few steps ahead of most people.
The good news is, there is time to recover, but you have to make some strong sacrifices and work on a plan.
First, let me say this, if you can find something you are passionate about, you will never work a day in your life – it will ALL be pleasure