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Is Working Longer A Smart Retirement Strategy?

Is Working Longer A Smart Retirement Strategy?

By: Kristin Andreski, Senior Vice President/General Manager, ADP Retirement Services Are your employees saving enough to retire when they are ready? According to recent research, chances are they’re not. EBRI’s 2017 Retirement Confidence Survey (RCS) finds almost half (47%) have less than $25,000 in retirement savings. Employees know they need to save more – most (59%) believe they should be saving 20% or more of their household income to live comfortably in retirement and they acknowledge there will be consequences to under-saving. Those consequences include planning to retire later (57%) and saving more later (54%). Today, 38% of employees also expect to retire at age 70 or older. But is planning to work longer really a smart strategy? There are many great reasons to continue working during the retirement years, but a shortfall in retirement savings isn’t one of them. A Bank of America Merrill Lynch (BOAML) report indicates that employees have a number of reasons for staying in the workforce: Staying mentally active – 62% Keeping physically active...

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