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Daniel Gonzalez | Moment | Getty Images Working longer is among the best ways to ensure you don’t outlive your retirement savings. The problem is, you can’t count on it as a strategy. When it comes to retirement age, there’s a big gap in expectations versus reality. Americans generally retire earlier than planned — often due to factors beyond their control, such as poor health or job loss, research shows. In 2022, the average expected retirement age was 66, according to a Gallup poll. But the actual retirement age was 62, on average. While the averages have varied somewhat over the years, there has been a consistent gap of about five years between expected and actual retirement ages since 2002, Gallup said. Why retiring later can have a ‘dramatic’ impact Delaying retirement by just a few years can have a “dramatic” positive financial effect, Blanchett said. Such people continue to get a regular paycheck, so don’t have to live off their savings. Meanwhile, they have extra time to save and for their assets to (hopefully) grow. Further, they can likely delay claiming Social Security benefits, guaranteeing a higher monthly payout for the rest of their lives. But retiring earlier than anticipated can have the opposite impact, experts said. Largely, this disproportionately affects people who plan to retire in their early 60s or later, according to Blanchett’s research. Those who target a retirement age past 61 end up making it about half as far as expected, he found. For example, someone who aims to retire at 69 would actually retire around age 65. Yet, countervailing trends are pushing workers to retire later. Social Security’s full retirement age has gradually been pushed back, to as late as age 67 for anyone born in 1960 or after. Americans are living longer, meaning they…

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Filed under: News - @ October 31, 2023 4:14 pm