This paints a very realistic and robust picture of

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percent (8%) were unsure. This paints a very realistic and robust picture of American's retirement age assumptions. For most people, their NRA should be their goal and then keep going for a few years if they enjoy their job, are physically able to continue working, and have an estimated life expectancy later than age 81. Retirement savers should plan to save as aggressively as possible on the chance that early retirement is forced upon them by downsizing. Table 1 shows the results of Gallup asking survey respondents, "At what age do you expect to retire?" The results are both intuitive and telling. Lower income earners plan to work longer than higher income earners. This makes logical sense based upon financial needs. The interesting part is that younger Americans have the idea that they will retire much sooner than reality. As they get older and gain life experience, they realize that they will be working longer than their initial expectations would suggest.
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Amanda Dixon published her review of US Census Bureau Data in a longitudinal study (tracking respondents over a period of time) of the average retirement age by state (Links to an external site.)Links to an external site. . Her analysis is very interesting. Below is a visual of her findings. She discovered that those living in New England (probably because they are Patriots fans :-) and those living in certain mid-western states tend to work the longest. She also found that in no state did the average age fall below age 62. By age 63, nearly half of the American population is retired and only 6% of Americans are still working at age 80. She did note a few interesting changes from her 2015 study. First, she found that the average age dropped in Alaska by one year. She attributes this to slightly higher unemployment (people being forced into retirement early). Second, Delaware's average age went up by one year. Amanda attributes this to declining unemployment and therefore people not being forced into retirement. Third, the average retirement ages in the District of Columbia (Washington DC), Georgia, New York, and Hawaii all went up by one year. She attributes these increases to the rising cost of living and the need to remain working. Fourth, the state of Virginia increased its average retirement age by one year and it is higher than every state that it borders. Apparently, Virginia is for Lovers ( their advertising taglin (Links to an external site.)Links to an external site. e) and for workers... Those who do retire early will have several issues with which to contend. You have already learned that they will have reduced Social Security benefits. The actual reduction will be amplified because not only will they have the early reduction penalties, they will also contend with the possibility of a lower AIME. The Social Security payment (PIA) is based on AIME and AIME goes up as gross wages go up. The last years of a worker's career are usually their highest earning years and cutting those years short also cuts AIME short. This same factor could also affect FAC (final average compensation) used in the defined benefit calculations if the employer offers a DB plan. In theory, the worker's home should be paid off by
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