Friday, November 12, 2010

The New Retirement Ain't Going to Be as Good as The Old Retirement

Living smart in retirement may not be as easy as it appears to some, given the plight of many Americans' retirement plans.

In fact, the new retirement ain't going to be as good as the old retirement.

Saving money tips may not be enough to get people to save for retirement given that a lot of Americans are just struggling just to get by.

In November 2010 AARP released a survey about New Yorkers’ perceptions of Social Security and what role Social Security should play in future retirement planning. (As Ernie Zelinski wrote, Social Security is a secure way to find great pleasure in being terribly deceived.)

Forty-one percent of New York residents as compared to 39 percent of Americans nationally, stated that the protection of Social Security as a source of retirement income was the most pressing issue facing the U.S. except the creation of jobs.

Other national issues were addressed including taxes, deficit reduction, health care, immigration and energy.

The retirement survey also found that:

  • 19 percent of New Yorkers say they are very confident they will have enough retirement income to live comfortably.
  • Eighty nine percent of New Yorkers believe that Social Security is highly important to their retirement income.
  • Most seniors in New York rely on Social Security and would struggle without it.
  • Sixty-three percent of New Yorkers would either not be able to afford basics or would have to make significant sacrifices.
  • Fifty nine percent (59%) of New Yorkers agree that the average Social Security check of about $1200/month is too low.

At the same time, another retirement study conducted by Protect Seniors.Org found that the vast majority of American retirees predict that their children and grandchildren won't be unable to participate in the "American Dream" and afford retirement.

Almost three quarters of poll participants said that they expect their children and grandchildren to have worse career and lifestyle opportunities than they enjoyed.

Over 65 percent of the American respondents replied no when asked if they thought their children will be able to afford to retire.

Over 70 percent of the Americans surveyed said that they doubt that their grandchildren will be able to afford a comfortable retirement.

"This is a real tragedy," said Dr. Mackell, former Chairman of the Richmond Federal Reserve Bank, who was involved in the study. "In the past it was a given that children would enjoy better career and lifestyle opportunities than their parents. That chapter in American life appears to be ending."

In short, you may want to recalculate your retirement number if you want to retire comfortably.

Most American workers are worried that their retirement savings won’t last the rest of their life. Only 40 percent of current workers say they will have enough money to finance a 25-year of retirement, according to a 2010 Towers Watson survey of 3,099 full time employees in the private sector. Just 62 percent of the survey respondents think their retirement savings will last even 15 years.

Take the Retirement Survey at Retirment Wisdom That You Won't Receive from Your Financial Advisor Blog.