It's no secret that many Americans struggle to save enough for retirement. When increasing savings rates are not an option, many plan to extend their time in the workforce, and some people take it to the limit.
About 23% of Americans say they will never retire, according to a recently researched AP-NORC Public Research Center. Another 23% said they were going to continue working over the age of 65, but did not decide when to expect to retire.
For those with small retirement, this is certainly a better plan than running out of money, but it is not realistic for everyone. You still need a backup plan in case your life forces you to retire early.
The problem of planning to never retire
The benefits of retirement retirement are obvious: You give you more time to save on retirement while reducing the amount of savings you need to cover your living expenses. In theory, it makes it possible to live comfortably into your age while reducing your savings while you are young. The problem is that it only takes a bad break to bring down the whole card.
A job loss, serious illness or injury, or care for a suffering family member, can all force you to enter the pension if you want to or not ̵
Create a Pension Scheme Anyway  For the best chance of retirement, you need to think about the worst case scenario. How much savings do you need to live on if you were forced to go for health, family, or career reasons?
Consider your life expectancy. This varies based on genetic and lifestyle factors, but it is not unreasonable to think that you could live over 90 or even 95 if you are reasonably healthy. Subtract this from your retirement age. It is up to you to decide what to use here, but not too high. Stay within 65 to 70 series. If you are able to continue working beyond this point, great. But if not, you'll be glad you had extra savings.
Then you estimate annual pension costs, including food, housing, insurance, healthcare and travel. Multiply that number by the estimated years of your pension and add 3% annually to inflation. Use a pension calculator for this. It should ask for an estimated return on investment. Go 5% to 6% if you want to be conservative. Once you have entered all of this, it should give you an estimate of the amount you need to save collectively and per month to hit your goal. Subtract this any money you expect to receive from other sources such as a pension, social security or a 401 (k) match. The rest is what you have to save independently.
Try to save at least as much as the calculator recommends each month. If you can't, save as much as you can right now, and try to free up more money by cutting your discretionary expenses or increasing your earnings by pursuing campaigns, switching employers, or starting a side cast.
You can plan to work late in your life, and if you manage to do so, you can add a greater heritage to your heirs. But you still need a pension plan in case things go side by side. If you are eventually forced out of your job in retirement without enough savings, you don't have to give up the job altogether. Look for a part-time job if you have the time. It may not cover all of your expenses, but it will help you stretch your existing savings even further and can make the transition to retirement a little easier.