These days, when you hear the word retirement, does it seem more like a desert oasis--just out of reach? It could be closer than you think. Despite what many people might have assumed in the wake of the recession, a new study shows that most won't have to keep working indefinitely.
The study, National Retirement Risk Index: How Much Longer Do We Need To Work?, reports that almost 85% of workers will be able to retire by age 70--just five years later than the generally assumed retirement age of 65.
“The results paint a different picture than recent opinion surveys, which find that people anticipate that they will have to work much longer,” according to the report, which was released by the Boston College Center for Retirement Research.
The study breaks down different ages and incomes to illustrate how working longer will improve retirement readiness. The study shows that 30% of people will be prepared to stop working at 62, which is the earliest retirement age recognized by Social Security. Retirement readiness only increases from then on in part, the study says, because Social Security steadily increases during this time: 8% per year from ages 62 to 70.
"While this finding suggests that today’s workers will need to work longer than their parents, they are also healthier and better educated, generally have less physically demanding jobs, and can expect to live longer,” concluded the study.