SAVANNAH, Ga. (CBS) - The average age of retirement has gone up in recent years and now a new poll shows about a quarter of Americans don’t plan to ever stop working.
Matthew Frisinger says he doesn’t know if he’ll be able to afford to retire, “depending on the cost of college for my kids, I got three little ones so if costs keep increasing as they do now, I will probably never be able to retire.”
A new poll shows he’s not alone. Twenty-three percent of American workers don’t expect to ever stop working. The survey from the Associated Press-NORC Center for Public Affairs Research finds another 23 percent plan to work past their 65th birthday.
Financial advisor Brenna McLoughlin says planning to stay in the workforce indefinitely is risky.
According to McLoughlin, “There are many factors beyond your control that could impact your ability to work for the rest of your life, including health issues, industry changes that are beyond your control or the need to care for a loved one.”
The poll finds only 29 percent of Americans over 50 say they feel extremely or very prepared for retirement, about 40 percent feel somewhat prepared and about one-third feel unprepared.
Financial planners say many Americans often underestimate how much money they will need in retirement.
McLoughlin says, “Inflation is a big factor. They can’t imagine how much more things will cost in the future. Another one is longer life expectancies.”
Financial planners suggest workers set up their direct deposit to allocate a portion of each paycheck to a savings account.
Experts add, no matter how close you are to retirement every little bit you save helps.