There are countless retirement plans available to both young and old Americans. As a result, the trends toward retirement are changing frequently in the U.S. As people continue to work hard but grow older, the ways that they retire will continue to evolve.
As the life expectancy for the average American increases, the average age for retirees has increased to 66 years old. In the 1990s, this age was 60 years old. Older Americans are becoming healthier and wanting to remain productive as they get even older. It’s common to find some people working until they reach their 70s or 80s.
More young adults are saving for their retirements in their early to late ’20s. Many of them are optimistic that they will be able to retire in their early ’60s, even if that ends up not being the case. Young people are still being smart about preparing for the future of their finances, and by their 30s, they have a solid retirement plan in place.
Due to increases in the average life expectancy, some retirees are remaining retired longer than they expected. However, this is not a good thing if they have not saved enough money for their retirement. The problem is that no one can accurately predict how long he or she will live or how long a retirement will last. With people living well into their 80s, working adults should add an extra 20 years to their retirement plans.
Many retirement plans provide the option to withdraw money early from one’s account. Many Americans do this despite the fees or tax penalties. By the time the actual retirement begins, the funds are much lower than the accountholder expected. Anyone who is planning for a long life should try to avoid following this trend. The funds are always easier to spend than compensate back into the account.
Choosing the best plan to retire with is getting easier for all Americans regardless of their age, occupation or expectations. Actually saving enough money to retire with is becoming more difficult, as suggested by the latest trends. Even so, Americans continue to have expanded options to choose from while they’re planning their financial futures.