For a viable retirement, age 70 is the new 65
A couple of decades ago, "retirement" referred to the final few years of life. It didn't take a tremendous amount of thought or personal responsibility to have a financially viable retirement. Defined-benefit retirement plans were the norm, and all you needed to do was put in your years of service to be entitled to pension income for the rest of your life. You weren't required _ to fund your retirement account, nor determine how it was invested.
Even if you spent every penny you earned (i.e., saved nothing for retirement), your combined pension and
Today, those approaching retirement might live to 90 and spend one-third of their adult lives in retirement. Traditional defined-benefit retirement plans have all but vanished, replaced by defined-contribution plans like 401(k)s and IRAs. The results under this "do it yourself" retirement system with investment-based, worker-savings-funded accounts have been disastrous.
According to "The State of American Retirement: How 401(k) s have failed most American workers" by the
You can't change the past, but if you're like most and your retirement account isn't what it should be, there is still hope of a financially viable retirement if you 1) work longer, and 2) delay claiming
That's the conclusion of an article in The Wall Street Journal, "Save More or Work Longer? It's No Contest," discussing a study conducted by the
The authors explored the financial tradeoff between working longer and saving more, with eye-opening results. They found working a little longer and delaying claiming
The primary reasons for this outcome are 1)
For a 62-year-old, postponing retirement and claiming
Working longer and delaying claiming
Younger workers, start saving/investing as much and as soon as you can for retirement. Because of compounding, time in the market is much more important than timing the markets
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