It's shocking, really. According to ConvergEx Group, "Only 58% of us are even saving for retirement in the first place. Of that group, 60% have less than $25,000 put away ... a full 30% have less than $1,000." According to Nielsen Claritas, Americans age 55 to 64 have a median net worth of $180,000 -- less than they'll likely need for health care spending alone during retirement.
I recently asked Joseph Dear, chief investment officer of CalPERS, one of the world's largest pension funds, whether America was ready for retirement. Without delay, he snapped: "No!"
We have a retirement problem. A very serious one that shouldn't be discounted.
But it is nothing new.
Same as it ever wasThe notion that these challenges are new -- that there was some golden era when Americans were prepared to kick up their feet and enjoy retirement in financial security -- is a myth. By some measures, retirees are in a better position today than at any other time in modern history.
Let's start with something simple. The entire concept of retirement is unique to the late-20th century. Before World War II, most Americans worked until they died.
The best way to show this is the labor force participation rate for men age 65 and up:
Source: Economic History Association, Bureau of Labor Statistics.
For most of us, I think the nostalgic sense of America's golden era
of retirement is set between the 1950s and the 1990s. That, we often
hear, is when workers had pensions and were able to retire with
security. But as much as twice the percentage of men were still working
into their elderly years back then compared with today. (more)Please share this article
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