Even if Social Security makes good on benefits promises, and even if low-income workers keep working till they’re 80, about 38% of those low-income workers could go broke when they finally do retire.
Researchers at the Employee Benefit Research Institute (EBRI), Washington, present that warning in a new analysis of data from EBRI’s Retirement Security Projection Model database.
The latest version of the database lets users study what will happen if householders defer retirement age past age 65.
The researchers consider whether individuals have a 50% chance of being able to meet basic retirement living expenses and uninsured health care costs.
Many workers – and some policymakers – are hoping workers can overcome gaps in public retirement programs and shortfalls in private savings by working past age 65.
One problem is that employers are not necessarily clamoring to hire and retain workers ages 65 and older, experts say.