Lets get the bad news out of the way first: 51% of households below the age of 65 are at risk of not having enough income to enjoy the lifestyle theyve been looking forward to in retirement. In fact, according to Tony Webb, research economist at the Center for Retirement Research (CRR) at Boston College, other than the value of their home, about half the population has basically nothing saved for retirement.

Scary.

Indeed, this years annual Retirement Confidence Survey produced by the Employee Benefit Research Institute found that 30% of todays workers have $1,000 or less in savings and/or investments, and 60% have less than $25,000 in their savings accounts. However these numbers include workers of all ages, ranging from the very youngest-whom you would expect to have little in savings- to those on the cusp of retirement.

Unfortunately, a significant portion of older workers have next to no savings or investments. Harris Interactive reported last year that, shockingly, a significant portion of nearing or already in retirement have no nest egg set aside at all. Generationally, one in four (25%) baby boomers (aged 46-64) have no retirement savings, with 22% of Matures (aged 65 and over) stating the same. (1)

Heres the good news: Theres a simple fix. Work a few years longer. (I didn't say you were going to like the solution)

How much longer? By expanding upon the National Retirement Risk Index, analysts at CRR, including Webb, determined that 85% of us would have the financial resources needed to maintain the standard of living were enjoyed prior to retiring if we worked until age 70. (Gasp.)

But I hate my job! Theres no way I want to keep working for that company for another ___ years!

Deeeep breath. You dont have to continue to slog away in the job you currently have. (Although if you enjoy it, thats your best option.) All you have to do is work someplace where you can earn enough money to cover your daily living expenses.

70 = the New 65

The key to this strategy is two-fold: Once you reach age 62, a) resist the temptation to file for Social Security benefits, and b) dont take any withdrawals from whatever personal assets you have, such as a 401(k), IRA, etc.

Read the original:
Easy Fix for Retirement Problems: Work Longer