JACKSONVILLE, Fla. – A new study reveals more and more people expect to keep working past the traditional retirement age of 65.
That news is proving to be a stressful and sometimes depressing realization for workers in their 20s, 30s and 40s, but financial experts say the key is to start planning right now.
Seventy just might be the new 65 when it comes to retirement age, because retiring at 65 years old is more of a myth than a reality for the average American worker, according to a new survey.
"Those days are over," said Titus Pittman, a financial adviser with Genesis Financial. "Most people will work and go beyond 65, and there's even been talk about raising the Social Security (age) to 68, so that just tells you the crisis that we have when it comes to retirement."
DOCUMENT: Retirement survey results from Transamerica Center
Pittman said it's time to redefine retirement, pointing to a new survey that finds that 82 percent of American workers expect to work past the age of 65.
Twenty percent of American workers expect to keep on working as long as they possibly can, because they worry they won't be able to save enough money to last a lifetime.
"Companies for the most part aren't doing traditional pensions anymore and a benefit plan," Pittman said. "This would give a person the opportunity to work 25 to 30 years, and get a pension, in addition to any additional personal savings. That really helped out, but in this year, companies are trimming back."
Outliving investments and savings is the top retirement concern for 44 percent of workers. And whether you're in your 20s, 30s or 40s, each age group is at risk.
"The only reason I thought about it is because I've had some family push me in that direction, but quite frankly, before I got married and had a kid, I didn't have a dime saved," Erik Ross said.
Ross, 32, just recently started saving. He thinks most people are overwhelmed with expenses, like bills and even technology, which puts saving on the back burner.
"Buying a new iPhone 6 that just came out is more important than buying a cheaper one for $200 and putting the money away, or getting a new computer every two years, so it's definitely technology," Ross said.
Studies also show that Americans are living longer lives.
"We understand now that we have to work to one day retire as young as possible," 21-year-old Jessica Chamberland said. "But now the idea of having to work longer really sucks honestly."
According to financial experts, $500,000 to $600,000 is a good, safe dollar amount to have saved in the bank for those planning to retire. Keep in mind that the average couple on a conservative budget spends $42,000 a year.
The U.S. Department of Labor has put out a list of the best ways to prepare for retirement. That information can be found here: http://www.dol.gov/ebsa/publications/10_ways_to_prepare.html.