November 5, 2013

Retirement age hard to plan

From The Blade

Retirement age hard to plan
Survey finds workers’ health or bosses can dictate decision

BY TYREL LINKHORN 
BLADE BUSINESS WRITER

A large number of working-age Americans believe it will be necessary to work longer than they had previously planned, but data suggests health problems and workplace realities may push them into an early retirement anyway.

A survey by PNC Financial Services Group recently found that 49 percent of Americans between the ages of 35 and 70 think they will have to work further into their lives that they previously thought to save enough money to retire.

But the same survey found that more than half of those who already have retired did so earlier than they had planned.

Celandra Deane-Bess, vice president and senior wealth planner with PNC, said, “What that means is this option of perpetually delaying your retirement age if you haven’t saved enough is not a good backup plan for saving for retirement.”

Of those who retired earlier than they had planned, PNC found 40 percent were pushed into an early retirement because of illness and an additional 28 percent because of actions by their employer.

Only 7 percent said they worked longer for the sole purpose of socking away more money.

Ms. Deane-Bess said the survey shows that it is not always easy to pick a retirement age and stick with it.

One reason? Many people are either procrastinating or completely sticking their head in the sand when it comes to making decisions about retirement planning.

Fifty-eight percent of people surveyed said they were either putting off making plans or had thought little about retirement. In general, those who admit they are not great planners more frequently say they will have to work longer.

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