Monday, September 04, 2006

Labor Report: Retirement & Economic Decline

"If people continue to retire at 63, they are going to face a severe decline in living standards at retirement for a number of reasons."
–Recent report from the Center for Retirement Research at Boston College.

Bottom line: 63 has been the average age for retirment, but if we delay retirement by only a few years, we can significantly improve our future standard of living from age 63 and on. That's the word from a recent retirement report from Boston College. The report is technical, but full of valuable information about retirement and quality of living.

Four Benefits of Delayed Retirement

“One powerful antidote to reductions in retirement income is to work longer. Working directly
1) increases people’s current income;

2) it avoids the actuarial reduction in Social Security benefits;

3) it allows their 401(k) plans to grow; and

4) it postpones the day when they start drawing down their pension accumulations or other retirement savings...

The question is how much longer people will need to work.”
--Center for Retirement Research

Here’s a link to the short news release from Boston College about early retirment. That link also has a link to the full report.

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