According to an article in the Chicago Tribune, the study indicates that “almost one in two American families are headed toward years of financial struggle in retirement” and will be unprepared for cuts in pension and Social Security income.
The study notes that most retirees need to replace between 65% and 85% of their income when they leave their job, but numbers indicate that about 43% of U.S. households will fall approximately 10% of the desired range needed to live a secure retirement.
If workers retire at an age younger than 65, notes the report, the numbers escalate even further, with approximately 66% of households unable to produce a secure retirement if they leave their jobs at age 63.
"Unless Americans change their ways, many will struggle in retirement," said Alicia Munnell, director of the study and a former member of the White House Council of Economic Advisers. "The answer is saving more and working longer."
Baby boomers (born between 1946 and 1964) are thought to be in better shape than younger Generation-Xers (1965 to 1972) as Boomers are more likely to collect Social Security and pensions. As more and more companies do away with pensions and as the Social Security pot dwindles, there will be a lot less retirement money to go around.
"Americans weaned on postwar affluence have come to expect an extended period of leisure at the end of their work life," the report noted. "And, indeed, the majority of today's retirees are able to afford a decent retirement. However, this group is living in a `golden age' that will fade as Baby Boomers and Generation-Xers reach traditional retirement ages in the coming decades."
Home
Reader Comments 
Related Links 
Recent Posts