Written by Margaret S Ross
Americans Worrying About Retirement
Summer is a time of family filled cars heading out on vacation. Even before the tank needs to be refilled, a plaintive voice is heard from the back seat, “Are we there yet?”
When it comes to retirement, many of those who had expected to be “there” are waking up to the fact that they may never arrive at their financial destination. What are they doing about retirement? Well, for one thing, they are openly worrying about it.
Gallup tells us that retirement has become one of North Americans’ biggest financial challenges. Half of the population would describe themselves as being either “very worried” or “moderately worried” about not having enough money for retirement.
Just 24% of Americans say they’ll have enough money to cover basic expenses during retirement, reports Principal Financial Group. The number of people who say their standard of living will be lower in retirement than it is now has nearly doubled in a single year.
Will your standard of living be worse?
We are worried about retirement income even more than many of the money worries that used to top the list. Things like paying for medical bills, making the house payment, or paying the minimum on credit cards.
Social Security will provide less security in the future. More than half of today’s retirees say Social Security is a major source of retirement income for them today. Less than 25% see it as a major source in their future.
Employers are providing less security. Only 4% of Americans completely agree that their employer cares about their long-term financial future.
It’s been 69 years since President Franklin Roosevelt introduced the Social Security System. As Dr. Phil would say, “How’s that working out for you?” It could be time for a personal Plan B.
“Are we there yet?”
Sources: Gallup, Principal Financial, Billy Florence, Kamaron Institute
