Many individuals who thought they would be able to retire when they reached age 65 are reconsidering because of the economic downturn and a sudden realization that they haven’t saved enough to live comfortably in retirement.
Retirement used to be an age-driven event, but now people are thinking about it from the perspective of, “Can I afford to retire,” said Joe Ready, director of Wells Fargo Institutional Retirement and Trust. In a recent survey of middle class people, those who make less than $100,000 a year, 25 percent of respondents said they would have to work until age 80 to be able to afford retirement.
When asked how much they would need to retire, the median response was $350,000, according to the Wells Fargo survey.
“That’s good from a practical standpoint, but the bad news is they haven’t saved much toward it,” Ready said. The median amount saved for retirement, of those surveyed, was $25,000.