Money Most workers want to retire by 65, but will they?

18:56  13 february  2018
18:56  13 february  2018 Source:   The Motley Fool

New app described as the "Airbnb of sex work" could keep workers safe

  New app described as the New app described as the "Airbnb of sex work" could keep workers safe

If we look at recent data from Paychex, it's pretty clear that the bulk of workers would like to retire at or before age 65 . 3% of men and 42.6% of women want to retire between 61 and 65 . But while it's nice to dream about early retirement , the reality is that it's something most Americans can't afford.

The majority of workers would like to retire by 65 , but only those making 0,000 or more expect that they 'll do so.

What to watch next
  • a man holding a sign: Why Chamath Palihapitiya's family  doesn't get screen time

    Why Chamath Palihapitiya's family doesn't get screen time

    CNBC Logo
    CNBC
    3:04
  • Warren Buffett et al. holding wine glasses: Why the secret to your success is who you marry

    Why the secret to your success is who you marry

    CNBC Logo
    CNBC
    1:12
  • a man wearing a suit and tie: What automation means for different skilled jobs

    What automation means for different skilled jobs

    CNBC Logo
    CNBC
    1:29
  • a group of people sitting at a desk with a laptop: How A.I. is helping boost workplace satisfaction

    How A.I. is helping boost workplace satisfaction

    CNBC Logo
    CNBC
    2:35
  • Warren Buffett wearing a suit and tie: Billionaire Warren Buffett says 'the real problem' with the US economy is people like him

    Billionaire Warren Buffett says 'the real problem' with the US economy is people like him

    CNBC Logo
    CNBC
    0:45
  • a screen shot of Mark Cuban: Mark Cuban: AI will produce the world’s first trillionaires

    Mark Cuban: AI will produce the world’s first trillionaires

    CNBC Logo
    CNBC
    0:46
  • a man flying through the air while riding a snowboard down a mountain: Suzy Welch: How to nail the interview question, 'What are your greatest strengths?'

    Suzy Welch: How to nail the interview question, 'What are your greatest strengths?'

    CNBC Logo
    CNBC
    1:49
  • a man in a blue uniform holding a baseball bat: Overcome your greatest fears by using Tim Ferriss' fear setting exercise

    Overcome your greatest fears by using Tim Ferriss' fear setting exercise

    CNBC Logo
    CNBC
    0:54
  • Goldie Hawn taking a selfie: We need to talk about children and online time

    We need to talk about children and online time

    CNBC Logo
    CNBC
    3:20
  • Goldie Hawn taking a selfie: Best 13 years I've ever spent: Goldie Hawn on Hawn Foundation

    Best 13 years I've ever spent: Goldie Hawn on Hawn Foundation

    CNBC Logo
    CNBC
    2:26
  • a close up of a sign: Will.i.am: 'A.I. is like what the internet was in 1987 — but beyond'

    Will.i.am: 'A.I. is like what the internet was in 1987 — but beyond'

    CNBC Logo
    CNBC
    1:51
  • a screen shot of a man in a suit and tie: The US tax cuts are bad economic policy

    The US tax cuts are bad economic policy

    CNBC Logo
    CNBC
    3:17
  • a screen shot of a man in a suit and tie: There is a risk of an overheated US market

    There is a risk of an overheated US market

    CNBC Logo
    CNBC
    2:22
  • a person and text: Volatility is back and that's 'not a bad thing'

    Volatility is back and that's 'not a bad thing'

    CNBC Logo
    CNBC
    2:43
  • a man holding a sign: China's electric vehicle market will see 'fierce competition'

    China's electric vehicle market will see 'fierce competition'

    CNBC Logo
    CNBC
    2:48
  • Jack Ma wearing a suit and tie smiling at the camera: What is Alibaba?

    What is Alibaba?

    CNBC Logo
    CNBC
    3:51
UP NEXT
UP NEXT

Video by CNBC

Working too long can be unhealthy -- and fatal

  Working too long can be unhealthy -- and fatal On-the-job fatalities climb the older workers get, especially those whose jobs are physically demandingSome would argue it's their own fault. Those older than 65 should retire, if it's financially feasible. But many haven't saved enough money. Instead they had to spend what they earned on raising children and trying to keep up with the never-ending bills.

Most people haven’t saved that much for retirement and they would benefit from working a few more years. That’s true for most people, but it doesn’t make sense for me. People aged a lot in just five years. After seeing this, I definitely wouldn’t want to retire at 65 .

thirties and forties want to retire at 62, compared to 63 for those in their fifties and 65 for those in their sixties . They also expect to retire around 65 , despite an ever-escalating State pension age. The report found the maximum age most workers would be willing to work is 67, but a rapidly rising

Quotes in the article

Paychex Inc

PAYX

Supreme Court ruling affirms injured workers’ rights on the job

  Supreme Court ruling affirms injured workers’ rights on the job Employers have a human rights obligation to reasonably accommodate injured employees after an accident, the Supreme Court has ruled in a decision that could have significant implications across the country — particularly for migrant and temporary agency workers.The case was fought by special needs educator Alain Caron after being told by his employer there was no suitable alternative work available after an injury prevented him from returning to his previous role.As a result, the Quebec compensation board said his rehabilitation would have to take place “elsewhere,” which for the board and Caron’s employer was the extent of their obligation under the law.

Most older workers are giving up the traditional idea of retirement and " want " to keep working into Nearly half of the under- 65 s who were not currently retired said they would like to still be in work "The results [of the survey] show there is no single view of retirement any more , but the message

Baby Boomers are retiring on a daily basis, but that doesn't mean they 've stopped working or even want to stop working . In contrast, more than seven in 10 non- retired Boomers say they are working because they have to work , he says.

64.34
-0.36
-0.56%

Countless folks hope to retire early so they can enjoy the flexible lifestyle that comes with not having a full-time job. Now when we talk about retiring early, that concept can run the gamut from calling it quits in one's 40s or 50s to leaving the workforce in one's early to mid-60s. But for the purpose of our discussion, we'll define retiring early as halting one's career before reaching full retirement age for Social Security purposes -- in other words, retiring before 66.

So where do Americans stand on early retirement? If we look at recent data from Paychex, it's pretty clear that the bulk of workers would like to retire at or before age 65. Specifically:

--7% of men and 16.9% of women want to retire between 50 and 55.

--4% of men and 25.7% of women want to retire between 56 and 60.

--3% of men and 42.6% of women want to retire between 61 and 65.

But while it's nice to dream about early retirement, the reality is that it's something most Americans can't afford. Consider this: The median savings balance among adults aged 56 to 61 is a paltry $17,000, according to data from the Economic Policy Institute. And that's hardly enough to set the stage for retiring ahead of schedule.

Giants to retire Bonds' No. 25 during Aug. 11 ceremony

  Giants to retire Bonds' No. 25 during Aug. 11 ceremony The San Francisco Giants announced Tuesday they will retire Barry Bonds' No. 25 and celebrate his career during an Aug. 11 ceremony at AT&T Park. August 11, 2018#Bonds25 | #ForeverGiant | #SFGiantspic.twitter.com/0h1iLELzMl— San Francisco Giants (@SFGiants) February 6, 2018© Justin Sullivan / Getty Images Sport / GettyThe date coincides with a visit from the only other MLB team that Bonds played for - the Pittsburgh Pirates - with whom Bonds spent the first seven years of his career."I'm both honored and humbled that the Giants are going to retire my number this season," Bonds said in a statement.

Georgia, tells Investopedia, “Some workers were counting on Social Security at 65 , but now the full retirement age for Granted, they can retire early, but Margie Shard, CFP personal emergencies, and the last thing you want to do is place even more strain on a fixed budget,” says Heys.

Half of workers can't afford to retire . 15 Feb 2011. Many will have a 65 retirement age, and some will require you to leave the scheme at that point. Fame & Fortune: Paul Daniels wasted too much on Ferraris but has made a fortune on his home - despite the flood.

The dangers of retiring early

Let's be clear: There's nothing wrong with retiring early if you're in the right financial position to do so. But most Americans aren't. In fact, nearly half of U.S. households today have no money set aside for retirement, and while there's always the option to work part-time later in life, that's not a path all seniors will ultimately wish to pursue.

Now you might argue that retiring at, say, age 61, is a much different prospect than retiring at 51, and you'd be correct. But even that poses some problems. For one thing, to retire at 61 means leaving the workforce without access to Social Security, as seniors aren't eligible for benefits until 62 at the earliest. Furthermore, filing for Social Security before full retirement age means taking an automatic reduction in benefits. And given the aforementioned statistics on personal savings, that's not a hit most seniors can afford.

Furthermore, you should know that retiring prior to age 65 means calling it quits before having access to Medicare coverage. And given that healthcare can easily come to be your greatest expense later in life, that's a pretty huge risk to take.

Tim Hortons workers in Ontario given Valentine’s Day cards in support of labour rights

  Tim Hortons workers in Ontario given Valentine’s Day cards in support of labour rights Tim Hortons employees at over 200 locations across Ontario received special Valentine's Day cards and chocolates from workers' rights advocates on Tuesday.Tim Hortons employees at over 200 locations across Ontario received special Valentine's Day cards and chocolates from workers' rights advocates on Tuesday in a show of support for improved working conditions.

If we look at recent data from Paychex , it's pretty clear that the bulk of workers would like to retire at or before age 65 . 3% of men and 42.6% of women want to retire between 61 and 65 . But while it's nice to dream about early retirement , the reality is that it's something most Americans can't afford.

For example, many workers are unable to save adequately for retirement because pensions have gone If you decide to retire at age 65 but you exhaust your assets early on during your retirement , the worst-case scenario might Others retire and say they never want to set foot in an office again.

Even if you have saved reasonably well for retirement during your working years, don't forget that Americans are living longer these days. In fact, one in four will live past the age of 90, while one in 10 will live past 95. Leaving the workforce early increases the likelihood that you'll outlive your nest egg, whereas the longer you work, the longer you avoid dipping in.

Making early retirement a reality

So now that you've been warned about the dangers of early retirement, let's talk about how to get there if you're serious about leaving your career behind sooner rather than later. For one thing, you'll need to start saving to accommodate that goal, and the earlier you begin, the better.

Check out the following table, which highlights the importance of saving at the earliest point possible in your career:

If You Start Saving $400 a Month at Age:

Here's What You'll Have by Age 65 (Assumes a 7% Average Annual Return):

25

$958,000

30

$663,000

35

$453,000

40

$303,000

45

$197,000

50

$120,000

You'll notice that $400 a month isn't a particularly overwhelming sum; it's not even close to maxing out a 401(k). But while saving $400 a month over 40 years will get you close to $1 million, you'll come away with far less if you delay your savings efforts to a later age.

Furthermore, you'll notice that the aforementioned totals assume an average yearly return of 7%, which is actually a bit below the stock market's average. If you want your savings to grow considerably to allow for an early retirement, you'll need to go heavy on stocks; sticking to safer investments like bonds won't get you nearly as much growth.

Tom Brady told Gisele Bundchen that he wants ‘two more Super Bowls’

  Tom Brady told Gisele Bundchen that he wants ‘two more Super Bowls’ Tom Brady told Gisele Bundchen that he wants ‘two more Super Bowls’In the latest episode of Tom vs. Time, Brady's documentary series on Facebook, Tom and Gisele came to an agreement regarding the length of his career.

said they ’d prefer to retire somewhere between age 60 and 65 , while 16% wanted to retirement Americans might be longing for early retirement , but many might have no choice but to work Workers and employers also contribute to a mandatory earnings-related pension fund, which they

There are certain groups of people who are sick of work and just want to retire as early as possible. For them , doing so might be beneficial. But I think more work needs to be done to identify those groups.

Finally, if you are going to retire ahead of schedule, have a plan for how you'll cover your healthcare needs. This either means saving enough to pay for private insurance until you become eligible for Medicare, or waiting until you turn 65 to get Medicare benefits. Keep in mind, however, that Medicare won't cover everything, so read up on the many services it won't pay for.

It's one thing to want to retire early, but it's another thing to work toward making that dream a reality. Most Americans today aren't in a position to retire ahead of schedule, but if you focus on saving steadily and investing wisely, you may come to find that you're able to leave the workforce exactly when you want to.

SPONSORED: The $16,122 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,122 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies .

The Motley Fool has a disclosure policy.

Angry Quebec nurses push for change .
MONTREAL - Veronique Brouillard says she loves being an auxiliary nurse. But between the constant requests to work overtime, calls that interrupt her vacations, and a heavy and stressful workload, the 36-year-old mother of three said she's exhausted, stressed — and furious. "We have no life," she said. "One day off in a week, and they call us four times (asking us) to come in for extra work. I've had enough." She was one of several dozen health care workers who stood on a Montreal street corner on Friday night waving signs and loudly expressing their anger over staff shortages and working conditions that they say are causing them to burn out and are compromisin

—   Share news in the SOC. Networks

Topical videos:

This is interesting!