Is 70 the New 65?

Is 70 becoming the new 65? CareerBuilder asked this question in a survey of Americans ages 60 and up. Thirty percent said they plan to retire at 70 or even older, and 20% expect to never retire.

While having insufficient money to leave full-time work is why they plan to put off retirement, 34% of those 60 and older are unsure how much total savings they will need.

When asked to guess that cumulative amount, 24% say less than $500,000. However, 42% say more than $500,000. This breaks down to 25% saying $500,000 to $1 million, 13% saying $1 million to $2 million, 3% saying $2 million to $3 million, and a mere 1% saying $3 million or more.

Given these figures, it might be surprising that 26% of American workers over 55 neglect to participate in their company’s 401(k), individual retirement account (IRA) or other retirement plan.

Seventy-four percent of workers over 55 say they earn less than they would like to earn. Twelve percent plan to change jobs, and 8% took on a second job last year.

“Faced with the expectations of living healthier longer, older adults may opt to remain in the work force longer and defer savings, pensions and Social Security for older age,” says Rosemary Haefner, chief human resources (HR) officer for CareerBuilder.

“This increased work force participation for older adults has implications for retirement policy, health care financing, Social Security and the behavior of employers and employees alike,” Haefner says.