Did You Miss It? The Retirement Gamble

retirement gamble

In case you’ve been under a rock or water, the United States is facing a retirement crisis.  The crisis is largely due to the unwitting retirement gamble being taken by the masses.

I’m aware that there are many who say otherwise… who say that middle aged folks

  • with little to no savings, 
  • little to no equity in their homes (if they still have them),
  • stagnant wages (if they’re still employed) and
  • virtually no chance of those incomes rising

do not face the prospect of a tremendously lower standard of living in retirement.

Those who say such things… are wrong.

There IS a retirement crisis in the United States.

A few facts…

  • The average retirement age is 63
  • The average length of retirement is 18 years… right now. By definition, that means about half of all retirements last LONGER than 18 years.  And life expectancy is only getting longer.
  •  Any decent retirement calculator will tell you that you need over $1,000,000 if you expect to withdraw $5,000/month for 30 years (assuming 6% investment returns and 2% inflation)
  • The average 50 year old has around $43,000 saved… A far cry from the more than $1,000,000 needed to withdraw $5,000/month
  • The average net worth (assets-liabilities) of folks between the ages of 55 and 64 as of late 2015 is around $45,000
  • 40% of baby boomers have saved nothing for retirement
  • 8 out of 10 Americans between the ages of 30 and 54 believe they will not have enough saved for retirement
  • 36% of Americans over 65 rely on social security exclusively… that number goes to 65% when you take into account those who can rely on family, friends and/or charity for a little help

Data sources: US Department of Labor and EBRI

Despite that potentially depressing laundry list, there is hope… That’s what this site is all about.  

Still, there’s more truth to bear… In case you missed all of the many times it aired here is Frontline’s “The Retirement Gamble.”  It’s a candid look at the retirement system in the US.  More specifically, it’s a look at the failings of the 401K system.  

 

 

Do yourself a favor… Make sure you prepare differently… and better.

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