"A major mistake many Boomers are making is assuming they will be able to work far longer than most people actually do. The Transamerica Center for Retirement Studies reports that 56 percent of Boomers expect to stay on the job until at least age 70 or skip retirement entirely. It sounds like a smart strategy in theory, but real life often tells a different story."
"Another major issue for Boomers is their overly optimistic view of what Social Security can actually cover. According to the Transamerica study, 43 percent of Boomers expect Social Security to be their primary income source once they retire. That is a problem, because the average retiree needs to replace 80 to 90 percent of their former income. Social Security provides roughly 40 percent for most people, and the percentage drops even lower for high earners."
Many Baby Boomers expect to work into their late 60s or beyond; 56 percent say they will stay on the job until at least age 70 or skip retirement. Average retirement ages are 65 for men and 63 for women, and many people leave work earlier than planned because of health problems, caregiving needs, or job loss. Planning to work longer can leave savings insufficient if retirement arrives sooner, and claiming Social Security early permanently reduces benefits. Forty-three percent expect Social Security to be their primary income, but Social Security typically replaces roughly 40 percent of prior income while most retirees need 80–90 percent, leaving a large shortfall that savings or pensions must fill.
Read at 24/7 Wall St.
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