BUFFALO, N.Y. (WKBW) — A "looming crisis," that's how experts are describing what faces millions of Americans who they say will not be able to retire by age 65.
The number of people working past their 75th birthday is expected to double over the next decade. Data from the U.S. Bureau Of Labor Statistics shows the traditional retirement plan is no longer reliable.
Pension plans are nearly extinct, the Social Security trust fund is facing a major deficit and many people are tapping into their 401k's early.
Nicholle Overkamp of Wilcox Financial says a lot of people do not plan ahead.
"Planning for retirement always sounds important, not urgent, but time evaporates and we just don't realize how much we need to save now," she says.
According to a recent study from Northwestern Mutual, adults in the U.S. believe they will need to save $1.46 million to retire comfortably, a 15% increase over last year.
Overkamp explains, "The dynamics have changed. The costs have increased. I mean health care alone for retirees. It's one of their biggest expenses. That's a lot to grapple with especially now that food prices have gone up a lot as well."
Overkamp also says because of rising costs, many people are working longer.
"And some seniors are going back to work because they want to continue doing the things they love they don't want to give that up but they need to offset the cost of inflation," says Overkamp.
So, what should you or a loved one be doing to prepare yourself for life after work? Overkamp says it's never too soon, or too late, to get your finances in order.
"As soon as you start having a paycheck you want to start thinking about planning. The best advice that I can give anybody is to stop saying 'I'm busy I'll do that later' and to really dig in and know your numbers and know exactly what it takes to get what you want because truly it's fun it can be really a fun process empowering to see what you're capable of achieving," says Overkamp.
