No Way! New Retirement Age is 80

Last Thursday evening, Nov. 17, I appeared on FOX 9 News at 9 pm (KMSP-TV), to comment on a new proposed retirement age of 80!

I was interviewed by FOX news anchor, Jeff Passolt, on a recently released Wells Fargo & Co. report stating that it is likely the American retirement age is going up from 65 to 80. The bank polled 1,500 middle-class Americans.  The study showed that 25 percent of middle class Americans think they’ll have to keep working until they hit age 80.  In addition, it showed that 75 percent believe they’ll have to work after they’ve retired.

Stock market swings and plunging home prices are just a few of the reasons for the increased retirement age.  The turn in the economy has dipped into many people’s savings and has made it more difficult for these folks to feel optimistic about their golden years. The Wells Fargo study also found that changes in pension plans and proposed cuts to Social Security and Medicare benefits are also cutting into retirement optimism.

Disappointing news to say the least.  The reality for most people is this option of working until age 80 is unrealistic. The average worker, even if they would hope to work until age 80, may not physically be able to work until this age. 

In my office at Secured Retirement Advisors, our financial advisors work exclusively with families that are in or near retirement. As I stated in my interview on FOX 9 News, I have no doubt that many Americans are not prepared for retirement.  I see it in my office every day.  And even if they have started preparing for retirement, many don’t plan for a 20 or 30 year life outside of the workforce. On average, Americans have only saved a mere seven percent of the retirement nest egg they were hoping to build, according to Wells Fargo’s study.

Most families don’t understand the enormous obligation that their money will need to fulfill to keep pace with buying power. During my FOX 9 interview, I used this example to emphasize this point.  Let’s say, that you plan to retire and live off of $50,000 dollars a year today.  Using current inflation rates, in 30 years, that family’s $50,000 dollars a year plan would now equal $140,000 dollars a year.  In other words, a dollar today will fall to the expected buying power of only 36 cents in 30 years.

How long did you expect to stay retired?

It doesn’t matter what age you are, you should have a retirement plan and work with an expert who knows how to maximize your money. Everyone’s retirement is its own unique story. Secured Retirement Advisors has clients today that are still working into their late 70s, even though financially they wouldn’t have to do so, but they just love their job.  Our company also has clients that wish they could work but can’t due to medical conditions or the obligation of caring for other family members. That’s why every client has received a customized plan which enables them to spend confidently in retirement.

If you would like a complementary “3 Step Review” of your own retirement plan, call Secured Retirement Advisors at 952-460-3260.