A common concern among Americans in all age demographics is not saving enough for retirement. With record-low savings rates, near-zero interest rates and not enough investors in the stock market, the retirement dream will eventually become just that… a dream.
In the last year, we have reported on numerous studies, reports and analyses looking at how retirement is transforming into a crisis, not only for the coming generations but for Baby Boomers as well. Citing the financial collapse, enormous levels of debt and living beyond their means, seniors today may not experience a comfortable retirement.
A new Wells Fargo/Gallup survey of investors suggests that a considerable amount of Americans fear outliving their retirement savings. The poll found that 46 percent are very or somewhat worried about outliving their savings, including half of non-retirees and about one-third of current retirees.
One of the biggest concerns among survey participants is Social Security – as we have noted Social Security will be insolvent by the year 2031, while other entitlement programs face bankruptcy in the next decade.
More than half (58 percent) say Washington will not act in time to address the fiduciary troubles of Social Security for future retirees. Also, only 38 percent of investors aged 18 to 49 anticipate to receive most or all of their Social Security benefits, while nearly three-quarters of those 50 to 64 and 65 or older are confident in getting them.
In total, more than two-thirds (69 percent) think they will have enough money to live out their desired retirement lifestyle.
Last summer, Capital Liberty News asked the question: “Are we financially prepared to live longer? The article looked at a number of reports that showed how people are living longer but their finances aren’t adequate enough to meet their age.
“There tends to be a false sense of security when it comes to planning for retirement,” stated Noel Archard, head of BlackRock Canada, in an interview with Yahoo! Finance. “We hope that the money will somehow be there when we need it but we’re not taking the action required to ensure it is. This is a serious problem, and addressing it must become an urgent priority.”
If you’re concerned about your retirement savings then incorporate some of these tips:
– Save more
– Maximize retirement savings accounts
– Work a little longer after retirement
– Omit Social Security from your retirement budget goals
– Reduce expenses and live within/beneath your means
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