The New Retirement Age: 73

Retirement

Nyhart, the actuarial and employment benefits firm, is a nationally recognized consulting firm located here in Indianapolis. The firm recently made the national news when it published a study of more than 10,000 employee accounts to analyze the readiness of employees to retire by the age of 65.The study found that 81% of adults 18 or older will not be able to retire by age 65. In addition, employees above the age of 55 on average need to contribute more than 45% of income going forward in order to retire by age 65. The average employee relying on the 401(k) as a primary retirement vehicle will not be able to retire until 73 years of age. For this report, Nyhart assumed that the employee would need to replace 70% of the final years’ income over their expected life time.

The study confirmed that the employee level of contribution is the single greatest factor in determining if they will be able to retire on time. An analysis of the traditional 401(k) benefit shows that, historically, employees have not been given the appropriate tools to appreciate the importance of this decision. The full study can be found at www.nyhart.com.

At WealthPoint Advisors, we assist management in selecting a 401(k) plan that fits the needs of a business and its employees. We know the business owner has three things in mind: to shelter funds for their own retirement, to provide a vehicle for employees to save for their retirements and to do these things with the minimum of administrative time and at a reasonable cost. We offer advice to employees who need help in deciding how much to save for retirement and what investments offer the best opportunity to reach that goal. Our role as advisors is to talk individually with all participants to offer guidance on the amount that will be needed at retirement, and offer a road map on how to get there.

About the Author: Michael Skehan

Michael Skehan, CPA, PFS, Senior Advisor is a well-known industry leader who has been recognized for his outstanding contributions both by his peers and community. Skehan was with RJ Pile for 44 years prior to retiring as managing partner to join WealthPoint Advisors LLC.