In our last blog we mentioned an article that discusses the possibility that the average Baby Boomer may need to work to age 75 to afford retirement. This delayed retirement is due to a number of factors, including: 1) less than optimal savings, 2) poor investment decisions, 3) early account withdrawals, etc.
We substantiated in our book, Bifurcated Retirement, that it is unlikely that the average Baby Boomer will be able to continue to work much past age 70 due to a number of factors, including: 1) physical health, 2) mental health, 3) emotional issues, etc.
However, there is a bright spot. As we mentioned in an earlier blog, an article of ours was just published in The Retirement Management Journal, regarding delaying Social Security benefits. In the article, we proposed a new initiative suggesting that the Social Security Administration allow beneficiaries to delay collecting their benefits to an age beyond the current maximum age of 70. If the average Baby Boomer could delay to age 76-77 the commencement of benefits, and assuming that this average Baby Boomer could work to age 76-77, then something very interesting and very beneficial happens. The average Baby Boomer, beginning with age 76-77, will receive benefits that will match expected retirement living expenses. And, these benefits will be adjusted for inflation, paid for life, and will match the cost of assisted living, should such long-term care be needed.
Assuming that Baby Boomers are moving to a longer working life, a simple extension by the Social Security Administration of an already existing benefit could help these Baby Boomers live their retirement dream without the fear of outliving their retirement funds.
Should you wish a copy of our journal article, please contact us through our website.
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