Reality Check: Your Plans To Work Until You Are 70 May Not Pan Out
In today’s economy, an increasing number of employees and gig workers are planning to continue working until they are 70. It isn’t because your Social Security checks are bigger if you wait until you are 70 to start receiving them, but also because they have so little retirement savings that even with the amount they will get from Social Security, they are looking at a very lean retirement. Planning to work until you are 70, or really any age above 65, is better than not having a plan at all, but you should also have a backup plan. Staying in the workforce longer is a good strategy for avoiding the “outliving your savings” problem, since the more years of your life you spend building up your savings, or even just earning a paycheck, even if you can afford to save little of it, the less time you spend living off of your savings. The problem is that the fact that you are currently employed is only partially due to factors within your control, and your future employment, even at the same job, is even less certain. If you love your job but are ready to face the reality that it may not always be there to issue paychecks to your septuagenarian self, contact a Tampa estate planning lawyer.
Involuntary Retirement Stinks at Any Age
If you are planning to remain in the workforce until you reach a ripe old age, Greg Iacurci of CNBC personal finance has a mathematical formula for you. Start with the age at which you plan to retire and subtract 61. For example, if you want to work until age 67, then subtract 61 and you get six. Now divide that number in half; in your case, you get three. Now add this number to 61; 61 plus three is 64. This is the retirement age on which you should base your plans; you will probably retire at age 64.
People’s actual age at retirement is consistently several years younger than the age that their 50-year-old selves planned to retire. As for why people retire earlier than they planned, there are three main reasons, all approximately equally common. About one third retire early for health reasons, one third because of job layoffs, and one third because they exceeded their financial goals and had enough money to retire earlier than they originally anticipated. Of the seniors who lost their jobs through corporate layoffs, only 10 percent were able to find new jobs that paid as well as their previous jobs. Most found full-time jobs that paid less, or else were only able to find part-time jobs.
Contact David Toback About Estate Planning for Reluctant Retirees
A Central Florida estate planning lawyer can help you if you cannot afford to retire early, but continuing to work into your 70s may not be an option. Contact David Toback in Tampa, Florida to set up a consultation.
Source:
cnbc.com/2023/10/31/why-working-longer-is-not-a-good-retirement-plan.html
