I will admit, I am a bit of a “retirement nag,” and am quick to point out the doom
and gloom stories of hard-working individuals who may not have enough to retire at the age they wish. Yes, I am the finger-wagger when it comes to preaching the benef
its of saving early, saving often, and saving in a mixed bag of investments. So in honor of the Thanksgiving holiday, I have linked to a recent Wall Street Journal Article that presents a more positive picture. (See “The Benefits of Working Longer“). Come to find out, if you are a little behind on retirement saving, you don’t necessarily have to work until you’re 102. An 45-year old average-wage worker who socks away 18 percent a year into savings (which is slightly higher than the recommended 12 to 15 percent a year) need only work until age 70 in order to maintain his or her standard of living in retirement.
Of course, saving early (age 25) and often (monthly contributions to some kind retirement account) is still the best advice. After all, unexpected physical or mental disabilities may prohibit some individuals from working to age 70 and beyond. But at least there is hope. It is never too late.