Still, “don’t count on working longer to solve a shortfall caused by your not saving enough,” said Stuart Ritter, a senior financial planner at T. Rowe Price. “Working longer feels more like a contingency than a strategy. The reality is most people want to retire as soon as they can.”
For those nearing retirement, Ritter suggests a part-time job or side gig, which can provide both a “flexible transition” out of the workforce and the extra income they need to enjoy a “semiretirement lifestyle.”
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However, there are factors that can limit the ability to work longer, despite the best plans.
Many retirees wind up leaving the workforce earlier than planned, according to the latest Retirement Confidence Survey from the Employee Benefit Research Institute. Reasons include layoffs, health problems and caregiving for a spouse or loved one, advisors say.
To that end, “saving more still helps,” Ritter said.
“The more you save, the less you’re living on and the less you’ll need to retain that lifestyle,” he added.
“On the Money” airs on CNBC Saturdays at 5:30 a.m. ET, or check listings for air times in local markets.
Source : CNBC
