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Working To Age 70 Not Enough

Working to age 70 will not guarantee adequate income in retirement for many, says research from the Employee Benefit Research Institute (EBRI). It found for approximately one-third of the households between the ages of 30 and 59 in 2007, working to age 70 will not be enough. It shows that nearly two-thirds (64 per cent) of households ages 50 to 59 in 2007 would be considered “ready” for retirement at age 70, compared with 52 per cent of those same households if they were to retire at age 65. Moreover, a worker’s participation status in a Defined Contribution retirement plan at age 65 will be extremely important due to the multi-year consequences for additional employee and employer contributions to the plan. Workers who remain DC participants at age 65 versus those not in one have a substantially improved retirement readiness rating even at age 65 (64 per cent versus 44 per cent) because those households with members in participant status at age 65 would likely have already been in DC plans for a number of years with their current employers.

Courtesy of Benefits and Pensions Monitor website News Alerts

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