Primary tabs
Location
New York Times: Working Until 70 May Not Solve Savings Shortfall
The campaign goal: “Every American lives in safe, decent, affordable and energy efficient housing on fair terms!” Join a community that is well informed on housing issues in the news. See the links below and Get Empowered Now.
Research from the nonprofit Employee Benefits Research Institute throws cold water on the
notion that working until age 70 will set most Americans up for adequate retirement income.
Jack VanDerhei, research director at E.B.R.I., says some studies have suggested that by working to age 70 — five years past the traditional retirement age of 65 — nearly 80 percent of preretirees, including lower-income Americans, could have adequate retirement income. But such models, he said, don’t fully take into account changes in the retirement system, such as the shift away from pension plans and toward 401(k) accounts, or the potential for a catastrophic health event that would require a stay in a nursing home.
When those factors are accounted for, he said, the outlook is less optimistic, especially for lower-income workers. E.B.R.I.’s analytical model, he said, indicates that for those in the lowest quarter of incomes, workers would have to toil until age 84 before 90 percent of them would have at least a break-even chance for success.
Click Here to read more.
