According to a recent study by the Employee Benefit Research Institute, American’s confidence in their ability to retire in a comfortable manner hovers right above historic lows. This has caused many pre-retirees
to reconsider when they will retire.
A quarter of respondents over the last year say the age at which they expect to retire has changed. Only 12 percent of them are expecting to retire earlier than planned; 88 percent expect to be in the workplace longer. You might be curious as to why they say they will be working longer. Here are some of the reasons they will be postponing retirement:
- The poor economy (36 percent)
- Lack of faith in Social Security or government (16 percent)
- A change in employment situation (15 percent)
- Inadequate finances or can’t afford to retire (13 percent)
- The cost of living in retirement will be higher than expected (10 percent)
- Wanting to make sure they have enough money to retire comfortably (10 percent)
- Needing to pay current expenses first (9 percent)
- Needing to pay for health care costs (7 percent)
- Needing to make up for losses in the stock market (6 percent)
- A change in the minimum retirement age for Social Security (5 percent)
Taking a look at this list, there are many good reasons to start planning for retirement as early as possible. Some of these things, like the economy or high cost of living, are out of our control, but others wouldn’t be a problem with adequate financial planning.