For all of us who’ve spent our working lives assuming that 65 was the age of retirement (or 55 for those of you who paid closer attention to retirement planning 20 years earlier than the rest of us), you won’t like this:
Americans better get used to working longer, even until they are 80 years old, according to a study by the Employee Research Benefit Institute (via Robert Powell at MarketWatch).
Naturally, those with lower incomes will need to work longer.
Here’s how it breaks down (via MarketWatch):
- If you make around $11,700 dollars a year you have to work to age 84 to have a 50% chance of affording retirement.
- If you make between $11,700-$31,200 a year you have to work to age 76 to have a 50% chance affording retirement
- If you make between $31,200-$72,500 a year you have to work to age 72 to have a 50% chance of affording retirement.
- If you make $72,500 or more a year you have to work to age 65 to have a 50% chance of affording retirement.
This study does point out one bright spot for those working past 65 though. If you are putting your money into some kind of retirement fund, your chances of saving enough increase substantially.
