Retirement is the final chapter of the American Dream. Every year, Americans spend over 2,000 hours working and saving to prepare for the ‘golden years’ of their lives. But that dream is quickly turning into a fairy tale.
A survey by the American Advisors Group found that more than a third of Americans today feel unprepared or unsure if they are on track for retirement. And nearly a third of seniors say they either plan to work through the age of 70 or never retire, according to a study by BlackRock.
“The United States is definitely facing a retirement crisis,” said Nari Rhee, a director of the retirement security program at the UC Berkeley Labor Center. “If we don’t do anything about it, years down the line you’re going to wind up with a lot more seniors in poverty and reliance on public services.”
One million dollars in a retirement account just two years ago is worth about $120,000 less when adjusted for inflation, and now, with that financial backdrop, a quarter of Americans say that are expecting to delay their retirement due to rising consumer costs, according to a survey by BMO Harris Bank.
So Is America really facing a retirement crisis and if so, can it be stopped? Watch the video to find out.
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Why Saving For Retirement Feels Impossible…(read more)
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Saving for retirement can often feel like an insurmountable task, as the rising cost of living, stagnant wages, and other financial pressures make it difficult for many individuals to set aside money for their golden years. With the average life expectancy increasing, and the cost of living rising, it has become more important than ever to save for retirement. However, many people find it challenging to do so for a variety of reasons.
One of the primary reasons saving for retirement feels impossible is the high cost of living. Rent, mortgages, groceries, utilities, and other everyday expenses can take up a significant portion of an individual’s income, leaving little room for savings. Add in the rising cost of healthcare and education, and it’s easy to see why many people struggle to put money aside for retirement.
Stagnant wages are another factor that makes saving for retirement challenging. While the cost of living continues to rise, many workers have not seen substantial increases in their wages. This means that even if individuals are diligent about putting money aside for retirement, they may not be able to save as much as they need to in order to maintain their current standard of living in retirement.
In addition, the prevalence of debt, particularly student loan and credit card debt, can make it difficult to prioritize retirement savings. Many individuals are focusing on paying off debt, which can leave little to no room for saving for retirement. With the burden of debt weighing them down, it can feel nearly impossible for some people to think about their long-term financial future.
Another reason saving for retirement feels impossible for many is the lack of financial education and knowledge about retirement planning. Many individuals simply do not know where to start when it comes to saving for retirement, and the complexity of options such as 401(k)s, IRAs, and other retirement accounts can be overwhelming. This lack of understanding can lead to inaction and procrastination when it comes to saving for retirement.
Furthermore, the ever-increasing cost of healthcare and long-term care can be a major deterrent to retirement savings. Many individuals fear that their retirement savings will be quickly depleted by healthcare expenses, making it seem futile to save for retirement in the first place.
It is clear that there are many factors that make saving for retirement feel impossible for countless individuals. However, it is important to remember that even small steps can make a difference. Taking advantage of employer-sponsored retirement plans, seeking financial education and advice, and creating a budget to prioritize retirement savings can all help make the goal of a comfortable retirement more attainable. It may feel impossible at times, but with dedication and perseverance, saving for retirement is achievable. It is never too late to start saving for the future.
Women s u r on your own self
You loses
Buy droopy
Let me go now okay chill y will y yuse funny looking cartoons faces
Personal responsibility and accountability. The government is not your parent. If you fail to save, you deserve to go without. I have seen many people posting exciting vacation pictures on social media and then complain that they are going to lose their home. How is it my fault that you failed to save?
I think the retirement crisis will get even worse. A lot of people can’t save because of low paying jobs, inflation, and insane rental rates. And now that home ownership is out of reach for middle class Americans, they won’t have a house to retire with either.
Most people miss it, but the secret to retiring comfortably is finding a way to make returns while your money works for you. My dad, as I remember, started saving for retirement quite late, but I know he was making more than 10k returns from his investment monthly and it was completely passive.
She says she didn’t save and she expected the government to support her. That is why she has a poor retirement.
Saying savings have never been hire is such a flawed statement. Cost of living has never been higher either.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
This is a hard subject because some people could not genuinely save any money, were chronically underpaid or unlucky. The problem is there are people who lived life high, spent like there was no tomorrow, vacationed all the time, etc and now they complain. No idea how to sort this out but there is no simple solution.
The best way to save for retirement is to start early. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a great investing book for teens.
Sad, that’s why I start early save and put a lot into a retirement account
I live on $2000/mo now while working! I’d love to get $1500/mo for Social Security and what is a pension? Those don’t exist anymore.
The current downturn in the market and the surge in inflation are causing me concern regarding my retirement plans. Despite these obstacles, I recognize that investing is a prolonged endeavor, and I'm maintaining my concentration on the future.
I'm a 'trailing edge – young boomer' who lost my job in March. We saw the end of the runway coming and started paying things off. To live on a limited budget, YOU HAVE TO BE DEBT FREE. To make it, we had to downsize (give things away) to temporarily live in an RV until we could sell our home to move to a cheaper place. RV living is an inexpensive way to live and you are not on the street. The process of downsizing for retirement was very painful! We got rid of things we accumulated over a lifetime. I really think SS will pay less in the future, so I plan to get a job, once settled, even if it pays next to nothing. Don't believe what the news media and politicians tell you. Wallstreet is NOT the bellwether of how well people are doing. The behind-the-scenes numbers show a recession is coming 100% probably in 2024 If you can't afford to save, at least stop spending and pay things off as quick as you can!
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.
Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!
Considering the vast majority of people are working pay cheque to pay cheque how are millennials etc ever going to retire…
1:44 immediately, she says she didn’t listen to anyone, and did not save for retirement. That is YOUR problem. Eat dog food with your SS money.
Inflation is the number only. The problem the amount money retired money market or bond were to invest its number again…
I'm not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
Why saving for retirement feels impossible: inflation.
It hasn't been "impossible" or even really difficult (for me) to arrange a secure retirement. I "screwed around" and didn't really start "preparing" for my retirement until I was 60. I budgeted,
lived within my means, saved/spent wisely and applied discipline. In Jan, 2024 I'll retire in The Philippines with NO debt, $220,000 in savings (collecting 5%+ interest) $2,250 in monthly
Social Security, and about $2,400 from approx. 70 hrs. of monthly (remote from P.I.) work for a few U.S companies. I'll be able to live a VERY nice "Western Style" life for under $2,000
(max) monthly for all expenses, and save at least $35,000 yearly – no problem.
So the old lady is broke….but she has really good English (rolls eyes)…
I have recently entered retirement, and I want to express that I found this video both informative and valuable for revisiting important concepts. I've come to recognize that these psychological principles are incredibly beneficial for individuals aiming to steer clear of errors, which is something I may not have fully appreciated when I first encountered them. This is likely one of the reasons why Warren Buffett emphasizes the significance of temperament in achieving success in investing.
I can't stress enough how crucial it is to have a fiduciary handling your retirement plan. They're legally obligated to act in your best interest!
The first lady's story is all Americans story. They all just bet on the gubament to pay in the end.
What I don’t understand is the lack of personal accountability in America. People don’t want to pay taxes but they want the government to pay for retirement. Life isn’t free people. I’m in my 40’s and have saved my whole life. I also intentionally got a job with a pension benefit. I’m set for retirement. I’m constantly flabbergasted by the lack of foresight in many Americans. People buy houses and cars and have kids they can’t afford, don’t save, carry huge credit card balances, etc. Take some responsibility for your own station in life people – you have the power to make choices that will allow you to retire just fine, but it requires delaying gratification. OR you cam blow everything you earn and live day to day, working till you die. It’s your choice.
I remember that suicide booth from Futurama and being like “that’s ridiculous!” But then I look at life expectancy going up and many incomes headed down and I’m like… huh that might be a real business in 70 years from now.