According to famed personal finance guru Suse Orman, we all have to brace ourselves to work a lot longer than expected.
The retirement is not 63 or 65 anymore. It’s actually 70, according to Orman.
She worte on Money, “70 is the new retirement age. Not a month or year before.”
According to the finance maven, we are living a lot longer so we need to start preparing.
“You likely have plenty saved up to breeze through 15 years or so of retirement. But, people, if you stop working in your 60s, your retirement stash might need to support you for 30 years, not 15.”
She went on, “Every dollar you don’t spend in your 60s is a dollar that can keep growing for your 70s and beyond. So I want each and every one of you to make working until 70 (or later) your goal.”
She spoke at the eMerge conference this past June in Miami and said, “You invest money and your money makes money, and the money you made with the money that you had makes money, and everything compounds.”
She explained how a 25-year old can make $1 million by retirement by adding $100 a month into a Roth IRA. A person at 35 however will end up making only $300,000, so it’s best to start early as possible.