How To Start Planning For Your Future Beyond Work - The Scary Truth For Retirees
For anyone contemplating retirement, the E*Trade ad that aired during the Super Bowl was probably pretty scary. The ad featured elderly life guards, fire fighters and DJs struggling on the job, singing “I’m 85 and I want to go home,” to the tune of Harry Belafonte’s popualr Banana Boat Song.
While the 1/3 figure refers to all Americans, and not just those in or nearing retirement, but the number is still far too large. GoBankingRates found that about 28% of those aged 55 and up still had no savings, and working longer, is the only real solution for many people. While many people hope to retire by at least age 65, many are finidng they have to work longer, and harder, after that time. Many are working well into their 70s.
There are some financial advantages to working later in life, or past "normal" retirement age. For starters, it shortens the length of time you will need to rely on the money you do save. Secondly, it means that when you finally do retire, you'll have a savings that is substantially larger, thanks to marketplace growth. And of course, working later into your life means you are likely to be able to put off collecting Social Security for a longer time period, and that will mean bigger government checks down the line.
The problem — as the E*Trade ad makes clear — is that remaining in the workforce isn’t always an option. A 2017 survey by the Employee Benefits Research Institute found 48% of retirees departed the workforce sooner than they hoped to, for health or other reasons. Planning ahead and working with a trusted financial advisor now, while you're still earning, is a smart choice for everyone, whether you are in your 30s or your 60s.