Author Description

In our father's generation, retirement meant a company-paid pension and social security. But most retirees today live off a combination of social security, an employer's 401(k) plan, and other savings like an IRA. But over the next few years that will change. Millions of future retirees will try to get by with benefits based on their past contributions to employer-based retirement plans, any employer matching money they could earn, what social security benefits they can collect, and personal savings they could put aside. Then they could face the prospect of supporting older parents whose cost of care can increase quickly as they become frail and require nursing home care. As a result, an increasing number of people will be forced to go back to work. Not only will they need the money, but within five years of retirement, the dollars they receive from reduced benefits can shrink in purchasing power at the local grocery store. But if they retire early and go back to work before "normal" retirement age, they could lose a big chuck of their social security benefits from the possible earnings limits expected to be set for collecting benefits.