Retirement Resources, Michigan Retirement Planning
When it comes to the economy, there has been more than enough troubling news in recent years to keep us focused on the present or the immediate future. Between the recession and financial crash of 2007-2008, and the ongoing slow recovery, it has been hard for most people to look more than a couple of months into the future.
Unfortunately, recent data shows that many Americans may be heading for serious problems as they near retirement. Specifically, most Americans aren’t saving enough to be able to support themselves in retirement. As a recent article posted on YourHoustonNews.com and elsewhere reports:
The U.S. is facing a retirement crisis. The simple fact is that most workers are saving too little to retire, according to the Employee Benefits Research Institute (EBRI), which tracks pension issues. And workers are acutely aware of this.
An institute study released on Tuesday found that the percentage of workers saving for retirement dropped to 66 percent from 75 percent in 2009. One-third said they had saved nothing for the years when they were no longer working.
Of those surveyed, 28 percent had no confidence that they would have enough to retire comfortably and 21 percent were “not too confident.”
So about half of American workers are facing retirement with considerable economic uncertainty, and with good reason: 57 percent of the workers surveyed reported less than $25,000 in household savings and investments.
Meanwhile, many of those facing a pinched retirement, about 36 percent, planned to work beyond the minimum retirement age for Social Security of 62. But those plans might not always work out. The largest group of retirees does so at 62; only 14 percent retired after 65. EBRI says 47 percent of retirees left the workforce unexpectedly, because of health issues, job loss or disabilities.
Living only on Social Security guarantees a frugal retirement. Benefits max out at $1,320 a month, $15,840 a year, at age 70. And Congress, with many anxious to trim entitlements, may shave that formula for future retirees.
At one time, workers relied on traditional company pension plans, but those have almost disappeared. In fact, EBRI left them out of calculations because only 3 percent of workers are still covered by them.
This data paints a grim picture. Without serious changes, it seems that life will be…