According to a recent study by the National Institute on Retirement Security, American seniors are retiring later than ever before. The report found that the average retirement age has increased from 61.8 in 2001 to 65.6 in 2016. There are many factors that have contributed to this trend, including the pandemic, inflation, and more.
There are a number of reasons why Americans are retiring later due to economic hardship and low savings. Why are people waiting longer to retire and collecting their Social Security benefits later? Improved health, for one thing—a longer life expectancy means that retirement funds need to be higher than what they used to. Second, because private pensions have switched from defined-benefit plans to defined-contribution ones, there is less of a push to retire early.
A study recently reported in the Wall Street Journal found that Americans' median retirement age has increased from 62 to 64 since 2014. The study also found that the percentage of Americans who plan to retire after age 65 has increased from 12 percent to 18 percent over the same time period.
One reason why Americans are retiring later is due to the COVID-19 pandemic. The pandemic has caused many seniors to lose their jobs or have their hours reduced. This has made it difficult to save enough money to retire. In addition, the pandemic has also made it harder for seniors to find new jobs due to a hiring freeze.
Another reason why Americans are retiring later is due to inflation. Inflation has been rising steadily over the past few years, and this has made it difficult for seniors to save enough money to retire. The cost of living has also been rising, causing Americans to save less and spend more on essentials like rent, food, and healthcare.
In the past, many Americans could rely on retirement matches and pensions to help them save for retirement. However, these are becoming more rare. In fact, only about a third of Americans have access to a pension. This is causing many people to save less for retirement and retire later in life.
Many Americans are worried that they won't be able to retire for years after they planned—or even not at all. The pandemic, inflation, and the rise in cost of living are all major factors affecting people's retirement plans. However, there are still ways to save for retirement. You can start by contributing to a 401(k) or IRA. If you have a pension, make sure you're contributing as much as you can. And finally, speak to a dedicated retirement financial planner to help you plan. They are experts in their field and can help you plan for inflation and market volatility.
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