Poor retirement planning... the Wall Street Journal, it was reported that 57% of potential retirees have less than $25,000 in retirement savings, this excludes any, if they have any equity built up in their home.
Even more disturbing than this is that the number of people trying to save for retirement has dropped from 75% to 66% in the last four years.
This not saving trend is continuing without any signs of people waking up...it could be the horrible example our politicians are setting by running up 10s of trillions of debt...
The government is reluctant to touch Social Security...good news for those retired now...bad news if you are in your 20s because this spending what we don't have cannot continue forever.
With 78 million baby boomers, reaching the age of 65 from 2012 to 2031, the outlook for successful retirement...is becoming weaker and weaker.
Combine all of this with the staggering national debt and the refusal of our elected politicians to address entitlement programs and it is not difficult to see that we are headed for a national crisis.
At the time of writing and I have been retired since 1994 employing frugal retirement lifestyles.
As a young college graduate in 1967 the norm was that you went to work for a company and at around age 60 you retired with a pension plan that had been building for 40 years...
Those days are over, but the majority of baby boomers had been very slow to react to the fact, that they need to take more personal control over their retirement planning.
Relying on a company pension and Social Security will not be the norm in the future, and relying on the government to change this reality is folly.
The sad news is I don't see this fact sinking in with baby boomers.
According to this industry leader, the average American family has a credit card debt of almost $16,000... that means 50% of the people have more than $16,000 in credit card debt.
With interest rates on credit card balances that would make Al Capone blush...it is obvious that the misuse of credit is the number one enemy of people that would like to retire.
Large financial companies, who make getting these credit card so easy, by starting to target college students are the only winners in this scenario.
The fact that we are living longer only makes the problem worse... when Social Security started in the mid-30s the average life expectancy was 61, benefits did not start until you turned 65...that sounded like a sustainable and compassionate idea.
Now our average life expectancy is in the mid-70s, But full retirement age remains 65 to 67 years old... this is simple math folks, if we do not raise the minimum age to start taking pensions and Social Security, the US will not have a Social Security safety net for future generations.
Retirees, and potential retirees are going to have to examine lifestyles that cost less money to enjoy... the good news is we know how to do it, and these lifestyles are fun and enjoyable as well.
Here they are:
The sooner you start examining lower cost ways to retire, Unless you enjoy working for someone else, the better chance you will have to recover from poor retirement planning.