"For many people, a traditional retirement doesn't seem like it is in the cards. As finance expert Suze Orman explains, around three out of four people who are currently working expect that they will continue earning money after retirement. This isn't necessarily because they want to. For many, planning to work is a necessity because saving enough for a secure retirement feels out of reach."
"As Orman pointed out, while many people plan to work, very few people actually do. Even though around 75% of current workers expect to work during their later years, data on current retirees show that this is definitely not what happens. The reality is that just three people out of 10 who are currently retired can earn a paycheck from a job. The huge gap between 30% and 75% demonstrates that "the best-laid retirement plans aren't guaranteed,""
About three out of four current workers expect to continue earning money after retirement, but only about three out of ten current retirees actually do earn a paycheck. Planning to work in retirement therefore creates a large and risky gap between expectation and reality. Unexpected events such as job loss, caregiving responsibilities, or health problems can prevent paid work in later years. Counting on post-retirement paychecks can leave retirees vulnerable to financial hardship. Preparing for retirement should include saving enough to maintain financial security if earned income disappears and modeling retirement outcomes assuming no work income.
Read at 24/7 Wall St.
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