Working Until 70 Greatly Increases Retirees' Financial Health . / Credit:

Working just a few extra years could ensure today's employees will have enough money for retirement, a new study shows.

The research by the Center for Retirement Research at Boston College revealed that whilejust half of today’s workers are financially ready to retire at age 65, more than 85 percent would be there by the time they are 70.

"Working longer is really the key to security in retirement," said Alicia Munnell, director of the Center for Retirement Research.

Munnell said sticking it out in the workplace improves financial standing in retirement three ways:

According to the study, since today's workers are healthier, better educated and generally have less physically demanding jobs than their parents did, putting in more years is often feasible – and it doesn't mean working forever.


Additionally, as health and longevity continue to improve, the research concludes employees will still be able to enjoy a reasonable period of retirement.

On top of working more, Munnell envisions today's employees will try to save more to achieve financial security in retirement.

"It will be some combination of the two, but working until 90 is not the answer," Munnell said.

The research was based on information from the National Retirement Risk Index, which measures the share of American households at risk of being unable to maintain their pre-retirement standard of living in retirement. The NRRI is determined by comparing households' projected replacement rates — retirement income as a percentage of pre-retirement income — with target rates that would allow them to maintain their living standards.

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