By David Pitt, The Associated Press
A third of middle-income workers will likely run out of money after 20 years of retirement, and significantly more lower-income workers will deplete their savings after 10 years, according to a study released Tuesday.
The Employee Benefit Research Institute, a non-partisan research group based in Washington, said its retirement-readiness study found that living longer, saving too little and inadequate planning for health care costs will leave many retirees short of money to pay basic living expenses.
The study finds that 64% of workers earning less than $30,000 a year will run out of money within 10 years of retiring. About a third of workers making $30,000 to $70,000 will run out of money after 20 years of retirement. One in 10 workers making more than $70,000 won’t have enough money.
“Early” Baby Boomers, meaning people 56 to 62, have a 47% chance of not having enough money to pay basic retirement costs and uninsured medical expenses, the study concluded. “Late” Boomers ages 46 to 55, as well as Generation X workers 29 to 45, have about a 45% chance of running short.
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