Is your new Retirement Age now 84?

Yes, you read that right 84. To be quite honest I am not even sure if I ever thought about living until I was 84 let alone working until I am 84. According to a recent study from Employees Benefit Research Institute many Americans will have to work until they are well in their 70s and 80s before they are able to afford retirement. That is downright scary.  As a woman, would you add extra years to that? I am not quite sure, I hope not.  What can we do to avoid that? Here are a few suggestions I came up with:

Start thinking about retirement– Regardless of your age it is time to actually start thinking about retirement. We have a tendency to not think about events or situations that are really far away. If your retirement is 40 years away then you most likely haven’t even given it any thought. Thinking about it now will give you a level of awareness that is needed to not work until you are 84.

Have a Plan – You need to plan well and plan early. The amount of Social Security Income you have is pretty much up in the air at this point. You will still need to live regardless of the amount. Decide how much money you will need to pay monthly expenses? Think about your medical insurance costs and any other bills you think you may have, Also, What does your retirement look like? Will you travel? Will still work? And how much will it cost? If you are not sure what the numbers look like. Here is a Retirement Calculator that will help you come up with a Ballpark figure. This ballpark figure is what you are aiming for as far your savings and investments.

Invest in your retirement fund at work – The majority of companies offer a 401K plan as part of their benefits.  A 401K is probably the easiest way to get started investing. With a 401K you invest a certain percentage of your pay, prêt tax into an investment account.  Your employer might also match your contribution up to a certain percentage. You should at least contribute p to the employers match.  One caveat about your employer’s contribution, you only receive the money from your employer as you are vested. This could take you up to 5 years.  Within your 401k you will have an array of investment options ranging for low risk to high risk.

Explore other retirement funds – You can also invest in an IRA outside of your employers 401K. This will help you build up more income for your retirement. Do you not know where the money will come from for you to start your IRA. Your tax refund is the perfect place to start.  If you are not planning on using your income tax refund, start an IRA account.

Make your health and health insurance a priority – Health insurance is a pain point for most people. Most personal bankruptcies are a result of Medical Bills.  Making sure you stay as healthy as possible will only be a win win as you age. This will not only help you but it will also keep your insurance cost low. You are going to need adequate medical coverage as you head into your going into your senior years. You also do not want all the money diligently saved to go towards medical costs.

The reality is people are living longer so it may mean that we have to work longer.  It also means we will need more money to live on. I hope some of the steps I provided will help you retire way earlier than 84.

Here is the original news segment I saw on MSNBC that prompted me to find the study: Is 80 the new retirement age?

What age do you think you will retire?

Andrea

Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea