A new Ipsos/USA Today poll is redefining what it means to “retire”. The survey of 1,152 adults (age 45-65) uncovered what many are discussing in retirement circles today. The simple fact is that many aging adults aren't financially ready for retirement.
A third of those surveyed plan to delay retirement past the traditional benchmark of 65. Twenty-two percent say they’ll hang it up when they’re between 66 and 70, 7% prefer to hold off until their early 70s and 3% vow not to give up the grind until after age 75. Eight percent don’t plan to retire at all. – Paul Davidson, USA Today, 4/11/17
Work During Retirement
Working part-time in retirement isn't a new phenomena. Countless people take up new hobbies, volunteer, or decide to do the job they always wanted to do. But that's voluntary work during your retirement years, (not a requirement to make ends meet). What we're talking about today, are people that put-off retirement, or forgo it entirely just to put food on the table.
RELATED: HOW SENIORS CAN SAVE MONEY IN 2017
Just how much are people saving for retirement? The answer (like most things in life) is – It depends. One of the primary drivers of savings is how old one is. Here is a breakdown of savings by age decade, from our friends at Investopedia. This illustrates the savings curve, and where an individual should be at each stage of their life:
- In their 20's: $16,000
- In their 30's: $40,000 (or the equivalent of your annual salary)
- In their 40's: $165,000 (if you're making $55K)
- In their 50's: $240,000 (if you make $60K per year)
- In their 60's: $360,000 (or 6 times your salary – if you make $60K)
According to Investopedia, most people in their 60's today only have an estimated $172,000 in their savings accounts. This usually isn't enough to sustain one's everyday working lifestyle demands, so adjustments just have to be made in retirement. Social security certainly can supplement one's income requirements, but even that requires a sound strategy for maximizing one's benefits.
RELATED: UNDERSTANDING 2017 SOCIAL SECURITY BENEFITS
Retirement satisfaction levels have been in decline of late. Lot's of folks are concerned about paying for healthcare, and just affording general-everyday-living-expenses. For many, taxes are yet another burden that can eat away at retirement savings. Given the aforementioned concerns, The Senior List will continue to focus on strategies for saving so that you can maximize your potential later in life!
If you have any retirement tips, or suggestions – Drop us a line in the comments below!
The post 1 In 3 Plan To Work During Retirement appeared first on The Senior List.