Resulting in the need for many Americans to delay their retirement
Almost 1/2 of all financial resources held by households age 65+ can now be considered in retirement income "drawdown" mode, according to a new research report. The report found that $4.3 trillion, almost 1/2 of the $9 trillion held by households age 65+ is being used to draw 4% or more of income needed on which to live. This is a major shift as "drawdown" was only 20% just a few years ago.
More savings and continuing to work after 65 will be necessary. According to the Center for Retirement Research, 51% of American households are considered at risk of not having enough financial resources to sustain their standard of living in retirement. That is the case even if they work until age 65--two years behind the current average retirement age.
Many older Americans have lost a substantial percentage of their financial resources and retirement savings and the value of their homes have depreciated making for a double whammy. This is essentially the reason why many pre-retirees have decided to postpone their retirements at least by a few years.
There are,several ways by which you could delay your retirement.
1. Continue working:
The simplest solution in the quest for delaying retirement would obviously necessitate that you keep on working
for at least a few years more either with your current employer or a new one.
2. Take up a temporary or part time job
: If you’re not able to keep your present job consider a temporary or part time job
or seasonal job.. This should give you access to some income at least before you finally decide to retire. A temporary career gives you some scope to defer your retirement as much as possible and at the same time you should make the conscious effort to spend as little as possible and keep as much money as you can for your “golden years”.
3. Contemplate downsizing
: For those whose retirement income looks to be less than their retirement needs you should consider downsizing
to save money.. Many pre-retirees have downsized to smaller homes, condos and apartments to save on mortgage payments and rents. You might also be able to do with only one car. These reductions in living expenses could provide enough savings to provide substantial additional money for your retirement years as well as allow you to live a more comfortable retirement life.