Nightly News   |  March 15, 2013

Changing rules for preserving your nest egg

Typically, employees have always been advised to stash four percent of their salary into a retirement fund – but some experts suggest lowering that number in order to delay taking Social Security checks. Every year that you delay Social Security you get an eight percent increase in your monthly benefits. NBC’s Chris Jansing reports.

Share This:

This content comes from Closed Captioning that was broadcast along with this program.

>>> the numbers in a survey from the last year 2012 show just 14% of american workers felt they had enough money to retire comfortably. there are good reasons behind that number. americans are living longer for starters. a lot of things including health care cost more and financial markets have been so volatile over the past decade. so a major worry for an entire generation now heading into retirement is how to make savings last long enough. as nbc's chris jansing reports the rules and the math are changing.

>> no more hurry. no more pressure.

>> reporter: used to be hard work with and company loyalty were rewarded with the good life.

>> what with my retirement plan and a few dollars i'd saved, i didn't have a thing to worry about.

>> how many are going on these?

>> 55.

>> reporter: for an increasing number of older americans, that lifestyle is no more than a dream.

>> retirement used to be 10 years, now it can be 30 years. that means your money has to last a lot longer.

>> reporter: it didn't last nearly long enough for 75-year-old peggy weber.

>> i was spending money a lot faster than i anticipated.

>> reporter: five years after she retired from the phone company peggy started a second career at walmart.

>> i don't think i ever envisioneded it like this.

>> reporter: neither did 65-year-old bill manger. retired from the food service industry he's back working, too at true part manufacturing in ventura, california.

>> it was to put food on the table and take care of my dog.

>> reporter: both say they like their b job but their stories are a cautionary tale for anyone still in the work force . the reel al ti only 25% of people can work for pay in retirement. either because they can't find a job or their health isn't good enough. and the rules of the retirement game are changing. for decades financial advisers have worked with this family. save enough so if you take 4% a year from your nest egg it will last 30 years. now experts say to reduce that 4% as much as possible and put off getting social security .

>> every year that you delay social security you get an 8% increase in your monthly benefits. that's a return financially that you can't beat in any other case guaranteed.

>> reporter: because working well into your golden years should be a choice, not a necessity. chris jansing , nbc news, new york.