It was bad enough when retirement experts began telling workers that they’d have to stay on the job longer than they’d planned _ to 70, or so, instead of 65 or even 67 _ in order to make ends meet after they’d given up the daily grind.
Now, new data from the Employee Benefit Research Association suggests that for many people, the reality is they will have to stay on the job even longer than that. Its research shows that for about one in three households whose heads are age 30-59, retiring at 70 won’t be enough to make it.
The association’s “Retirement Security Projection Model” shows that 64 percent of households age 50-59 (in 2007) would be OK to retire at 70. That’s a lot better than the meager 52 percent that would be ready to retire at 65.
The rest, though? They’ll come up short trying to cover basic living expenses and health care costs.
“It would be comforting from a public policy standpoint to assume that merely working to age 70 would be a panacea to the significant challenges of assuring retirement income adequacy, but this may be a particularly risky strategy, especially for the vulnerable group of low-income workers,” said Jack VanDerhei, the association’s research director.