Economics Today 18th Edition by Roger LeRoy Miller

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Why Many Older People Are Planning to Work More Years
Scott Ghelfi, a businessman in his early 50s in Massachusetts, is rethinking his retirement plan. When Ghelfi originally formulated that plan more than a decade ago, he had thought he would accumulate sufficient retirement savings to allow retirement by no later than age 65. Now he is very doubtful that will happen. The problem is that Ghelfi's retirement savings are not growing as fast as he had anticipated. One reason for the slower savings growth is that Ghelfi's business has earned fewer profits in recent years, which has resulted in an unexpected reduction in his annual flow of retirement saving. Another reason is that interest rates have been very low. Consequently, the annual interest receipts added to his alreadyaccumulated retirement savings are much lower than he had anticipated.
Ghelfi is among many older U.S. residents confronting the fact that the amount of accumulated savings available to them at their desired retirement age will surely be lower than they thought. A number of these workers are concluding that the best option for aligning their retirement plans with the realities they face is to push back their scheduled retirement dates. Consequently, Ghelfi and millions of other older U.S. residents are opting to keep working-and saving-for several more years than they had originally intended.
If interest rates rise, could Ghelfi again consider retiring earlier? Explain.