Nearly three-quarters of middle class Americans surveyed by Wells Fargo said they likely will continue working in their retirement years, with 25 percent saying they will “need to work until at least age 80.” These findings prompted the company to declare in a press release that “80 is the new 65.”
The survey covered a lot of territory and produced a number of interesting results:
- Middle class Americans have saved a median of $25,000 for retirement.
- Their median estimate of the amount they will they will need in retirement is $350,000, which is lower than most expert estimates.
- Almost 30 percent of people in their 60s have less than $25,000 in retirement savings.
- When asked how much savings they will need for out-of-pocket health care costs during retirement, those surveyed gave a median response of $60,000, with only 20 percent estimating $100,000 or more. A separate study out of Boston College estimated that $197,000 for a retired married couple is more realistic.
- 79 percent said they would like their employers to provide personalized advice to help them manage their 401(k) investments. The percentages were higher for younger employees aged 25 to 29 (86 percent) and 30 to 39 (81 percent).
- 78 percent said they would like the option to convert retirement accounts to annuities that provide fixed monthly payments.