Is the "normal" retirement age no longer feasible? Most workers are now working way past their mid 60s even into their 70s. In this newsletter we are looking into the cause of the shift.
MOST WORKERS NOT CONFIDENT THAT THEY WILL RETIRE IN MID 60's
"Most U.S. workers at mid-and large-sized companies lack confidence in their ability to retire within the age range — typically 65 to 67 years of age, per the Social Security Administration — recognized by the federal government, according to a recent survey by Economist Impact and TIAA subsidiary Nuveen.
The survey found that 57% of respondents felt this way about their retirement prospects, and the sentiment was especially strong among Black, Hispanic and Asian workers compared to White workers, the firms said. Generation Z respondents also were less satisfied with retirement benefits and less confident in their prospects than their older counterparts.
About one-third of respondents said their employers clearly communicated information about retirement plans and even fewer said they “strongly agree” they had clarity about how much retirement income they would receive." Learn more
RETIRING IN YOUR 60's IS BECOMING AN IMPOSSIBLE GOAL
People are living longer, and daily life is getting more expensive. It may be time to rethink the timeline for leaving the workforce. Handing in your proverbial badge as a sexagenarian has been the goal for many workers around the world: turning 65 would open a golden portal to retirement. Yet increasingly, the idea of stepping away from the workforce in your 60s doesn't seem realistic – or even sensible – for many people, especially now. Some major financial figureheads agree.
In March, investment-management firm BlackRock released its annual letter to the company's investors. Its CEO Larry Fink sounded a warning for workers hoping to retire – comfortably and financially secure – in their 60s. As global life expectancy grows, social safety nets fray and cost of living spikes, Fink warned that retirement at age 65 won't be possible for many, even most, people. "[Retirement] is a much harder proposition than it was 30 years ago," wrote Fink. "And it'll be a much harder proposition 30 years from now." Learn more