"A major mistake many Boomers are making is assuming they will be able to work far longer than most people actually do. The Transamerica Center for Retirement Studies reports that 56 percent of Boomers expect to stay on the job until at least age 70 or skip retirement entirely. It sounds like a smart strategy in theory, but real life often tells a different story."
"Another major issue for Boomers is their overly optimistic view of what Social Security can actually cover. According to the Transamerica study, 43 percent of Boomers expect Social Security to be their primary income source once they retire. That is a problem, because the average retiree needs to replace 80 to 90 percent of their former income. Social Security provides roughly 40 percent for most people, and the percentage drops even lower for high earners."
Many Baby Boomers plan to work into their late 60s or 70s, but actual retirement ages average about 65 for men and 63 for women. Unexpected health problems, caregiving responsibilities, or job loss often force earlier exits from the workforce. Planning income through age 70 can leave savings insufficient and push retirees to claim Social Security early, reducing lifetime benefits. A large share of Boomers expect Social Security to be their main income, yet Social Security typically replaces about 40 percent of pre-retirement income while most households need 80 to 90 percent. Additional savings, pensions, or income sources are necessary for a comfortable retirement.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]