401(k) Savers Recalculate Retirement Needs for 28-Year Horizons as 60% Fear They Cannot Retire on Their Terms
Updated
Updated · Yahoo Finance · Aug 9
401(k) Savers Recalculate Retirement Needs for 28-Year Horizons as 60% Fear They Cannot Retire on Their Terms
2 articles · Updated · Yahoo Finance · Aug 9
Summary
A retirement at 55 can stretch savings across 28 years if someone lives to 83, far longer than the roughly 17-year plan many conventional models assume for retiring at 62.
That longer horizon can force either a larger 401(k) balance or lower withdrawal rates, especially if retirees live three to 10 years beyond earlier planning assumptions.
Nearly 60% of workers told Allianz they worry they will not be able to retire on their own terms, with inadequate savings cited as the most common obstacle.
Pew data show most Americans see 62 as the ideal retirement age, yet nearly half of U.S. workers retire earlier than planned, often for reasons outside their control.
Early retirees also must fund the gap before Social Security at 62 and Medicare eligibility, adding pressure as healthcare and other late-life costs rise.