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Questioning a Retirement “Rule of Thumb”
You’ve probably seen it somewhere in your research: You’ll need 70% to 80% of your pre-retirement income to live comfortably (however you define that term) in your “golden years.” While that may be true, the reality is, according to conclusions drawn by the Stanford Center on Longevity (SCL) in a recent study, that few older Americans are unable to accumulate the resources to achieve this “rule of thumb” level. Forbes contributor Steve Vernon discusses this predicament in a post on their website, noting that “ … most older American workers who are approaching their retirement years will fall short of that target income …”
And to compound the situation, Vernon notes “ … the SCL report also documents that boomers have more debt going into retirement compared to previous generations of retirees.” The likely result of both these issues–the lack of accumulated wealth and the debt load–will be an extended work-life for many older Americans.
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