Tags: Powell | work | retire | 65

Robert Powell: Don't Count on Being Able to Work Past 65

By    |   Tuesday, 28 April 2015 08:00 AM

Many retirement planners urge their clients to consider working beyond the age of 65 to ensure their savings are adequate to fund the lifestyle they seek in their golden years.

So it's no wonder that 36 percent of Americans say they plan to retire after 65, according to a study conducted by Greenwald & Associates and the Employee Benefit Research Institute.

But don't count on being able to work past the age of 65, says Robert Powell, editor of Retirement Weekly.

That's because 50 percent of Americans who plan on working longer find themselves retiring unexpectedly, according to the study, he writes in USA Today.

As reasons why, they cite health problems (60 percent); changes at their company, such as downsizing (27 percent), having to care for a family member (22 percent); and new skills required for their job (10 percent).

So how should you deal with these possibilities?

"Plan for all possible outcomes," Powell writes. "If you don't have a financial plan in place, do so now. That plan should cover all aspects of your finances, from budgets to insurance to taxes to investments to estate planning and retirement planning," he notes.

"Buy enough insurance. Given that most people leave the workforce because of health problems or disability, you should check your current employment benefit package," Powell adds. "And if you don't have disability insurance through work, buy some."

Coming up with a plan also represents one of the suggestions MarketWatch columnist Chuck Jaffe offers in counseling his readers on retirement finances.

The benefits of a plan: "it's not just that more planning leads to more savings, it's that it breeds confidence," he writes. "The truth is that without some sort of plan — an assessment of needs compared with income, with contingency plans for employment loss and health-care/disability concerns — a person's confidence level is as much a guess as whatever they think they will need to live on when they stop working."

Jaffe also counsels adopting realistic expectations. "The fastest way to improve your confidence about your ability to retire comfortably is simple: lower your standards," he explains. "Look at what you want, but come up with contingency plans, so that you can deal with a shortfall of income or working years, but also so that you change your expectations based on what you expect to amass."

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Many retirement planners urge their clients to consider working beyond the age of 65 to ensure their savings are adequate to fund the lifestyle they seek in their golden years.
Powell, work, retire, 65
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2015-00-28
Tuesday, 28 April 2015 08:00 AM
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