Tags: Americans | financially | retirement | EBRI

Fiscal Times: Americans Not Well-Prepared Financially for Retirement

By    |   Monday, 09 June 2014 03:20 PM

A plethora of recent studies show that when it comes to retirement, we definitely don't have our financial house in order.

And it's an issue near the top of many Americans' minds. An April poll from Gallup  indicated that 59 percent of adults are moderately or very worried about not having enough money for retirement.

For example, the National Retirement Risk Index from Boston College's Center for Retirement Research shows that 53 percent of households risk falling at least 10 percent short of the retirement income needed to maintain their standard of living.

Editor's Note:
38 Trades That Could Turn $1,000 Into $49,000

In addition, the Employee Benefit Research Institute (EBRI) finds that more than 40 percent of retirees are at risk of running out of money for daily needs, out-of-pocket spending on healthcare or long-term care, according to The Fiscal Times.

The three areas that many of us expected to fund our retirement now appear at risk, The Times reports. That's Social Security, personal savings and employer-sponsored pensions.

But employers have cut retirement benefits, personal savings have crumbled in the aftermath of the Great Recession and Social Security's future financial soundness is in question.

"The graying of Americans, a growing retirement population, rapid changes in the private employer pension programs, projected insolvency in public pension funds, fiscal pressures at both the federal and state level — all this and more requires policymakers to renew their focus on ensuring existing programs support individuals and families in their twilight years," Bill Hoagland, a senior vice president of the Bipartisan Policy Center, tells The Times.

The Wall Street Journal lists five retirement issues that many of us haven't adequately taken into account.
  • You'll most likely retire earlier than you expect. But that's not a good thing. "EBRI has found that a sizable number of retirees leave the workforce earlier than planned for negative reasons," The Journal notes.
  • It's hard to get back into the workplace. "Retirees often find it hard to find new work."
  • If you buy a second home, you'll regret it because it's a lot more expensive than you think.
  • Medicare doesn't cover as much as you think it does. In fact, traditional Medicare only covers 48 percent of a beneficiary's health costs, according to the Kaiser Family Foundation.
  • Your budget is not correct. "Many people work on the assumption that they will spend less when they're no longer working, The Journal states. However, that is usually not the case.

Editor's Note:
38 Trades That Could Turn $1,000 Into $49,000

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A plethora of recent studies show that when it comes to retirement, we definitely don't have our financial house in order.
Americans, financially, retirement, EBRI
Monday, 09 June 2014 03:20 PM
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