People in the U.S. are living longer and healthier lives, but there’s a catch to the good news: Because of the increased likelihood of running out of money during retirement, an increasing number of people are choosing to remain in the workforce longer.
According to a new study from CareerBuilder, 53% of workers age 60 and older are postponing retirement to work longer. Four in 10 workers don’t expect to retire until they’re at least 70, according to the survey.
“People are so inadequately prepared for this,” Jack Otter, Barron’s associate publisher, told FOX Business’ Neil Cavuto during an interview on Friday.
About 30% of baby boomers have less than $50,000 saved for retirement, according to Otter. At that point, there are few options to save more money beyond working for a longer period of time, he said. According to CareerBuilder, about 23% of people older than 55 do not participate in contributing to retirement accounts like their 401(k)s or Other options for those looking for last-minute saving efforts should consider seeing a financial expert, Otter said, stressing the importance of ensuring the advisor is held to a fiduciary standard. He recommended the National Association of Personal Financial Advisors, Preferred Advisor Academy or the Garrett Planning Network, which is inexpensive.
“That’s crucial,” he said. “Because we hear terrible stories of unsavory characters.”
People should also take into consideration the cost of the city they choose to retire in, he said. Cost of living can differ wildly between cities.
“There are lots of little decisions that you make correctly if you have advice, and lots of bad decisions if you don’t,” he said.