In 1940 the life expectancy at age 65 was 12.7 years, by 1990 it was 15.3 and today it is 18.2 years. So, we are living longer, but seek to retire earlier – the median retirement age has steadily declined in the last several decades – and many Americans are poorly prepared to retire.
What a combination‼️
“A recent survey from Natixis Investment Managers set out to find out exactly when most Americans hope to stop working. The average age is 62, the research found. However, it turns out when people hang up their hats varies by generation. The youngest cohort, Generation Y — ages 25 to 40 — plans to retire at an average age of 59. For Generation X — now 41 to 56 — the average age is 60. Baby boomers — who range from 57 to 75 — indicated they plan to work longer, with an average expected retirement age of 68.” Source: CNBC
“Most Americans aren’t prepared for retirement. While most non-retired adults have some type of nest egg, only 36% think their retirement savings are on track, according to the Federal Reserve. A separate survey from the Insured Retirement Institute found that most workers don’t have sufficient retirement savings and aren’t putting enough aside to catch up.” Source: CNBC
And then we have the Financial Independence Retire Early (FIRE) folks who see retirement as a goal in their 30s and 40s and claim to be fully prepared for the next fifty-plus years.
What do I know, I retired at age 67.