According to a recent survey by Northwestern Mutual, two-thirds of Americans believe there is a chance that they will outlive their savings with one-third saying it is likely. Nearly half expect Social Security to be their primary source of retirement income.
To make up for any shortfall, many people cited working past retirement age as their plan B should their savings prove insufficient. The problem is that this may not be realistic. A study by Transamerica shows that many people over age 60 have a more and more difficult time maintaining employment as they age. Many employers favor younger workers whose benefits, such as health insurance, are far less costly than they are for older workers. In addition, according to disability data and employment research, workers over age 60 are far more likely to have injuries on the job and take longer to recover from such injuries making it difficult for them to keep working.
The result is that it may be more difficult to remain working after normal retirement age than many people realize. This not only highlights the importance of saving for retirement but also shows that it is important for workers to rethink their plan B so that they do not end up in a difficult financial situation in their golden years.