{"id":1972,"date":"2012-07-20T07:00:10","date_gmt":"2012-07-20T11:00:10","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=1972"},"modified":"2012-07-20T07:00:10","modified_gmt":"2012-07-20T11:00:10","slug":"second-verse-why-you-should-plan-on-working-to-age-70","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=1972","title":{"rendered":"Second Verse: Why You Should Plan on Working to Age 70"},"content":{"rendered":"<p>&nbsp;<\/p>\n<div id=\"leftRail\">\n<div>\n<div>\n<p><a href=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/kerryhannon\/files\/2012\/07\/images1-150x150.jpeg\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft\" src=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/kerryhannon\/files\/2012\/07\/images1-150x150.jpeg?resize=150%2C150&#038;ssl=1\" alt=\"\" width=\"150\" height=\"150\" data-orig-height=\"150\" data-orig-width=\"150\" \/><\/a>Push off retiring until age 70 and your financial world is going to be much brighter.<\/p>\n<\/div>\n<p>The Center for\u00a0<a href=\"http:\/\/www.forbes.com\/retirement\/\">Retirement<\/a>\u00a0Research at\u00a0<a href=\"http:\/\/www.forbes.com\/colleges\/boston-college\/\">Boston College<\/a>\u00a0reports in a new study titled: \u201c<a href=\"http:\/\/crr.bc.edu\/briefs\/national-retirement-risk-index-how-much-longer-do-we-need-to-work\/\">National Retirement Risk Index: How Much Longer Do We Need to Work?<\/a>\u201d \u00a0that a whopping \u00a085% of households would be prepared to retire by age 70.<\/p>\n<p>(One caution: These figures are based on Social Security as\u00a0it is today.)<\/p>\n<aside data-position=\"4\">\n<div><\/div>\n<\/aside>\n<p>I want to believe this. And I also believe that most of us will want to keep working even beyond that in our so-called retirement years part-time, or in some fashion, for plenty of good reasons.<\/p>\n<p>Work does not have to be drudgery or a sentence to toil in the salt mines. It\u2019s about staying engaged, alive, purposeful. It\u2019s also a good way to keep a safety net in place\u2026 just in case.<\/p>\n<p>For me, born in 1960, working until age 70 is a hop, skip and jump. In fact, the Social Security\u00a0Administration considers my\u00a0<a href=\"http:\/\/www.ssa.gov\/retire2\/1960.htm\">full retirement<\/a>\u00a0age to be 67 anyway. But SSA does dutifully remind me to sign up for Medicare at 65.<\/p>\n<p>FYI, if you\u2019re wondering what the heck the \u00a0\u201dThe National\u00a0Retirement\u00a0<a href=\"http:\/\/www.forbes.com\/risk\/\">Risk<\/a>\u00a0Index\u201d is, it measures the share of U.S. households \u201cat risk\u201d of being unable to maintain their pre-retirement standard of living in retirement.<\/p>\n<p>So the central question here is at what age would the vast majority of households be ready to retire?<\/p>\n<p><strong>Here are the key findings of the study:<\/strong><\/p>\n<div>\n<ul>\n<li>Working longer is the key to financial security, but it does not mean working forever.<\/li>\n<li>Half of today\u2019s households are ready to retire at age 65, but more than 85 percent would be prepared by age 70.<\/li>\n<li>Thus, five years of additional work would solve the problem for the bulk of the population.<\/li>\n<\/ul>\n<\/div>\n<p>\u201cThese results paint a different picture than recent opinion surveys, which find that people anticipate that they will have to work much longer,\u201d<br \/>\naccording to the report\u2019s authors.<\/p>\n<p>I recommend reading through this \u00a0research by Alicia H. Munnell, Anthony Webb, Luke Delorme, and Francesca Golub-Sass\u00a0for a more detailed analysis. \u00a0I personally am cheering for this sensible, less alarmist analysis, and I think you will too.<\/p>\n<p><strong>It\u2019s a flip-side view.<\/strong><\/p>\n<p>By estimating target \u201creplacement rates\u201d (A\u00a0rate needed to allow\u00a0households to maintain their pre-retirement standard\u00a0of living in retirement)\u00a0and calculating the \u201cage of readiness\u201d (the age\u00a0at which the household can stop\u00a0working and maintain its pre-retirement standard of living)\u00a0\u00a0the authors estimate that:<\/p>\n<ul>\n<li>About half (48%) would not have to work beyond 65 to be ready to retire.<\/li>\n<li>Roughly a quarter (23%) of households would need to work one to three years beyond age 65 to be prepared for retirement<\/li>\n<li>17% of households would need to work four to six years beyond age 65;<\/li>\n<li>9% of households would need to work seven years or more.<\/li>\n<\/ul>\n<p>There is a small note, though, that 2.8 % would not be ready even by the time they are 90.<\/p>\n<p>The authors\u2019 conclusion: \u201cWorking longer is the key to a secure retirement for most households.\u201d<\/p>\n<p>\u201cOften people respond to such a proposal, however, with \u201cI don\u2019t want to work into my 90s.\u201d Today\u2019s workers should derive comfort from the calculations presented above, which indicate that the vast majority of households \u2013 more than 85 percent \u2013 would be prepared for retirement by age 70.\u201d<\/p>\n<p>\u201cWhile this finding suggests that today\u2019s workers will need to work longer than their parents, they are also healthier and better educated, generally have less physically demanding jobs, and can expect to live longer. In short, working longer is feasible for most households, and it does not mean working forever.\u201d<\/p>\n<p>Bravo.<br \/>\n<em><\/em><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/kerryhannon\/files\/2012\/07\/image0023-150x15031.jpg?resize=75%2C75&#038;ssl=1\" alt=\"\" width=\"75\" height=\"75\" data-orig-height=\"75\" data-orig-width=\"75\" \/>I\u2019m\u00a0the author of\u00a0<a href=\"http:\/\/www.amazon.com\/gp\/product\/0811871150?ie=UTF8&amp;tag=kerrhann-20&amp;linkCode=as2&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0811871150\">What\u2019s Next? Follow Your Passion and Find Your Dream Job<\/a>, available here\u00a0<a href=\"https:\/\/kerryhannon.com\/\">www.kerryhannon.com<\/a>. I am a\u00a0<a href=\"http:\/\/www.forbes.com\/companies\/metlife\/\">MetLife<\/a>\u00a0Foundation Journalists in Aging fellow. To learn about great jobs for retirees, check out my\u00a0<a href=\"http:\/\/www.aarp.org\/work\/experts\/kerry-hannon\/\">column\u00a0<\/a>at\u00a0AARP. My weekly column \u00a0at PBS\u2019s NextAvenue.org is\u00a0<a href=\"http:\/\/www.nextavenue.org\/expert\/kerry-hannon\">here<\/a>. Follow me on Twitter,\u00a0<a href=\"http:\/\/twitter.com\/KerryHannon\">@KerryHannon<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>More fun reading here:<\/p>\n<aside data-position=\"4\">\n<div><a href=\"http:\/\/www.forbes.com\/sites\/janetnovack\/2011\/02\/15\/the-big-decision-when-to-take-social-security\/\">The Big Decision: When To Take Social Security<\/a><cite><a href=\"http:\/\/blogs.forbes.com\/janetnovack\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/assets\/images\/avatars\/jnovack_40.jpg?w=640&#038;ssl=1\" alt=\"Janet Novack\" \/><strong>Janet Novack<\/strong>Forbes Staff<\/a><\/cite><\/div>\n<div><a href=\"http:\/\/www.forbes.com\/sites\/kerryhannon\/2011\/09\/08\/planning-for-a-second-career\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/specials-images.forbes.com\/imageserve\/0bsB84f9HTaOW\/176x176.jpg?w=640&#038;ssl=1\" alt=\"\" \/><\/a><a href=\"http:\/\/www.forbes.com\/sites\/kerryhannon\/2011\/09\/08\/planning-for-a-second-career\/\">Planning For A Second Career<\/a><cite><a href=\"http:\/\/blogs.forbes.com\/kerryhannon\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/cache\/gravatars\/kerryhannon_40.jpg?w=640&#038;ssl=1\" alt=\"Kerry Hannon\" \/><strong>Kerry Hannon<\/strong>Contributor<\/a><\/cite><\/div>\n<div><a href=\"http:\/\/www.forbes.com\/pictures\/eeli45hglj\/do-a-budget-2\">21 images<img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/specials-images.forbes.com\/imageserve\/08Jx2rO4jK9j9\/176x176.jpg?w=640&#038;ssl=1\" alt=\"\" \/><\/a><a href=\"http:\/\/www.forbes.com\/pictures\/eeli45hglj\/do-a-budget-2\">Photos:\u00a0Ten Financial Planning Moves For The Big Career Shift<\/a><\/div>\n<div><a href=\"http:\/\/www.forbes.com\/sites\/kerryhannon\/2012\/02\/16\/older-workers-staying-on-the-job\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/thumbnails\/blog_1185\/pt_1185_3760_o.jpg?w=640&#038;ssl=1\" alt=\"\" \/><\/a><a href=\"http:\/\/www.forbes.com\/sites\/kerryhannon\/2012\/02\/16\/older-workers-staying-on-the-job\/\">Older Workers Staying On The Job<\/a><cite><a href=\"http:\/\/blogs.forbes.com\/kerryhannon\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/cache\/gravatars\/kerryhannon_40.jpg?w=640&#038;ssl=1\" alt=\"Kerry Hannon\" \/><strong>Kerry Hannon<\/strong>Contributor<\/a><\/cite><\/div>\n<div><\/div>\n<\/aside>\n<\/div>\n<\/div>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/static.hupso.com\/share\/buttons\/share-small.png?w=640&#038;ssl=1\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"Second Verse: Why You Should Plan on Working to Age 70  \";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"excerpt":{"rendered":"<p>&nbsp; Push off retiring until age 70 and your financial world is going to be much brighter. The Center for\u00a0Retirement\u00a0Research at\u00a0Boston College\u00a0reports in a new study titled: \u201cNational Retirement Risk Index: How Much Longer Do We Need to Work?\u201d \u00a0that a whopping \u00a085% of households would be prepared to retire by age 70. (One caution: [&hellip;]<\/p>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"Second Verse: Why You Should Plan on Working to Age 70  \";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"author":2,"featured_media":1433,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[7,29,38,95,101,31,6,55],"tags":[332,333,107],"class_list":["post-1972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-boomers","category-finances","category-living-in-retirement","category-older-workers-2","category-personal-finance-2","category-saving-for-retirement","category-second-verse-blog-on-forbes-com","category-social-security","tag-boomers","tag-retirement","tag-work"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes2.gif?fit=300%2C300&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p3YFQS-vO","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/1972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1972"}],"version-history":[{"count":3,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/1972\/revisions"}],"predecessor-version":[{"id":1975,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/1972\/revisions\/1975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/media\/1433"}],"wp:attachment":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}