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70 new retirement age
Why are so many people over the age of 70 deciding to stay in the work force?

There’s no question that today’s Boomer enjoys better health & vitality than previous generations. Many choose to stay working because they enjoy their careers and it strengthens their financial position. But a more common scenario is that many Boomers have not saved enough money to retire comfortably. Traditional pensions are largely disappearing and many Americans haven’t saved enough, over the working year, in their retirement accounts. Nearly half of all retirees depend on Social Security benefits for more than half of their income (1). Considering that the average benefit for retired workers in 2016 is $1341, it is apparent that some people need to work as long as they can just to cover basic living expenses (2).

Do you think 70 is the new retirement age in America?

In addition, today’s longer life expectancies and higher health care costs create a need for even more savings. Two major advantages of staying employed is a) they can keep contributing to their work place retirement accounts and b) delay claiming social security benefits. Waiting until age 66 or 67, depending on the birth year, can have benefits. Claiming Social Security benefits after full retirement age can see their benefit increase 8% per year up to age 70.

Even so, many older Americans cannot keep working due to health reasons. There is no way to predict what your future may be. However, workers who save consistently during their working years are able to make retirement decisions more freely.

Advice From A Retirement Expert

My advice for every working American is to take maximum advantage of your work place’s retirement accounts like 401(k) or 403(b). Use whatever matching dollars you can get from your employer and start saving early in your career. Stash away as much as you can into nest egg dollars. It will be easier for you to decide what the new retirement age should be for YOU.

Source:
1) Social Security Administration 2016
2) Employee Benefit Research Institute 2015

Freeman Owen, Jr -Retirement Specialist

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