Monday, July 21, 2008

Book Review: "Working Longer: The Solution to the Retirement Income Challenge"

According to a New York Times book review of Working Longer: The Solution to the Retirement Income Challenge, overworked, underpaid, aging baby boomers may have no choice but to work longer and retire later if they want to avoid a precipitous decline in our accustomed standard of living. Hunter Hurt III refers to the book by Alicia H. Munnell and Steven A. Sass as "thought-provoking" (albeit "if sometimes cloistered academic terms") and as defining "succinctly the problem faced by baby boomers, and for that matter, by all Americans who aspire to retire now or in the near future."
The authors contend that working longer and retiring later can generate powerful benefits for aging baby boomers and the workers in their wake. First, it would delay the need for people to tap into I.R.A.’s and 401(k)’s, thereby swelling their total assets and increasing the future income they can produce.

Second, it would help maximize the benefits of Social Security, which are about one-third higher for recipients who are 66 than for those who are 62.
Source: New York Times "Who Wants to Retire Later? (Don’t Laugh)" (July 20, 2008)

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