Is retirement dead in America?

The Washington Post published an interesting article Monday that showed one in four Americans with 401(k) and other retirement savings accounts are using them to pay for their current expenses. For millions of Americans, they’re using a quarter of the annual $293 billion deposited for retirement for the now.

According to the study by financial advisory firm HelloWallet, the quarter of Americans are using the withdrawals, loans or cash-outs to pay their mortgages, credit card debt and other monthly bills. One-third of these individuals are in their 40s, a group closing in on retirement.

“But millions of Americans, caught between flat wages and high expenses for everything from sending children to college to making home repairs, feel as though they have little choice. The withdrawals have grown substantially in the wake of the financial crisis,” the article stated.

It should be interesting what the United States looks like in the next few decades as the national debt balloons, the unfunded liabilities and expenditures tsunami engulfs the country and the average American has no more money due to a variety of reasons, such as taxes and consumer spending.

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Comments

  1. I am 46 and have no retirement. I did have a 401k and cash set aside prior to the 08 crash. That money is long gone as is my house and most of what else we owned. I tell people now that I am retired and they say “wow you must have done well”… I tell them that since I have no retirement and I am not counting on any social security to be there for us, THIS is what my retirement looks like… working til I drop….

  2. Al Rocuant says:

    don’t feel alone Chris. I’m 56 and I too feel like I’ll be working till the day I die. The American dream is dead and we’re on our own now to fend for ourselves because the government has wasted every taxpayer dime and there’s nothing left for people like you and me.

  3. Unfortunately our government is not very much concerned about people, their well being is much more important to them. Still I have came across one article, unfortunately, I fail to remember the site, where there was given a careful and reasonable explanation to the fact that the withdrawal from retirement plan brings you more saving on interest rate than any other kind of loans. There were even proper examples with calculations.

    Jull from http://www.cashloansonlinefast.com/

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