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Subscribe to RSSThe Great Recession of 2007-09 has turned expectations about retirement upside-down.
Just five years ago, only 16 percent of Americans said they would delay retirement until age 70 or older. Now a record 26 percent of those surveyed say they expect to be septuagenarians before they retire, according to annual survey on retirement from the Employee Benefit Research Institute.
The shift is consistent with a decades-long trend of a rising retirement age. In 1991, 84 percent of workers surveyed said they expected to retire by age 65, including 19 percent who expected to quit before age 60.
Now only 50 percent expect to retire by age 65 and only 8 percent are so optimistic as to think they can begin living a life of leisure before 60.
The actual retirement age also has been rising, especially for women, according to research by Alicia Munnell of the Center for Retirement Research at Boston College.
The average age of expected retirement has been rising ever since the recession ended, according to the EBRI, which has been doing the annual survey for 22 years. The most commonly cited reasons for delaying retirement are the poor economy, a lack of faith in Social Security and a "change in employment situation."
Experts caution that even though many of us think we will continue working past age 65, life often has other plans. About half of retirees surveyed said they left the work force earlier than they planned, mainly for health reasons. Others were forced out of their jobs because of layoffs, plant closures or family reasons, such as having to care for a loved one.
The EBRI, a research group funded largely by financial service companies, says only 52 percent of workers are "very" or "somewhat" confident they have enough money to live comfortably through their retirement years. That is up a bit from last year but down from 70 percent in 2007.
The survey of more than 1,200 adults was conducted in January and has an expected margin of error of 3 percentage points.
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one way to cure the social security shortage(since congress raided it of 2.1 trillion dollars, since 1964), let everyone continue to work , until they drop dead at work, problem solved.
At 64, I love doing what I'm doing. The IT job market in the DFW area is just phenomenal. Got laid off after Thanksgiving and started a new job in January. Constant offers from recruiters. If I ever give it up full time, I'll do consulting (3-6 months at a time) or do training classes. Don't think I'll ever stop.
Johnny Carson once asked the old comic Georgie Jessel why, at age 90, he hadn't retired. Jessel responded: "If you retire and move to Florida, you're dead in a week." Never stop doing what you love!!!
The only group left who can look to a well financed reasonable retirement age are those hysterical municipal workers whose pensions are inappropriately guaranteed by all the politicians their unions bought off for the last forty years.....
And don't forget Congress!
You forgot the financiers who retired with MILLIONS in their 30s and 40s after robbing the country and now run fundraisers for the GOP.
Amusing how another article on this same page discusses young people moving back home with the folks. Seems most of those young folks are A-OK with it. Wonder if supporting children into their thirties has anything to do with not being able to retire?
I would have worked 45 years at 65 if i can't retire by then i go into drug dealing to make money.If i get caught who cares,i mean really how much time can they give me.
I had always said "Oh, I'll never retire." But as I have gotten older, I've realized that I can't work the way I did when I was younger. So it begins to look like the most I can do is to hold out and keep working as long as I can, and continue to put money into my retirement. I wish I had started saving for my retirement a lot sooner--and had put more money into it every year. Those of you in your 40s and 50s, take heed...
I think one should start saving for retirement as soon as one starts working full-time. I know I started when I was 26 years old. Unfortunately, it was during the time when the market tanked but that's ok, I am still a long way from retirement so I am still hopeful.
Sadly, I started contributing to my retirement fund when I was working part-time as an undergrad student but I don't even know where the money is now - it's somewhere in the UCLA system lol but it's no big deal given it's probably just a couple of hundred dollars.
As big business eliminates pensions plans by any means, and turning workers against each other because now government pensions are targeted I expect that no American will be able to retire in the future. Just the way the 1% want it. No benefits payed out, which will increase their wealth. Work till your dead unless your in the 1% club. And of course the party of the rich - repubs want to decrease or delay your social security and medicare benefits that you paid into so they can further reduce taxes on the rich and corporations. How stupid can people be that they continue to vote for repubs that screw them at every turn.
...if the Dumbocrats didn't waste the taxpayers money and force two income households on the populace, you might be able to retire.....
60% of Americans have saved less than $25K for retirement. My wife and I save aggressively for our future but will without a doubt move away from NY/NYC to more individual friendly state. We can no longer afford the tax support for municipal pensions. Yet the drum beat of the simple minds continues - where's mine, now. I need it, I deserve it, I was promised it. Hate the wealthy, OWS. It's the repubs.
Look at yourself and you'll see the problem.
Great post BillJ. If all else fails, blame it on the Republicans. Sickening. Folks need to look in the mirror and take personal responsibility for their own actions. No one is holding me back, 1% or otherwise.
Right on Just me and BillJ.
News Flash: We are responsible for our own lives. We are responsible for getting educated, learning a skill, providing value to our employers or our customers, buying and paying for a home or rent, putting food on our table, paying for doctors and dentists, saving money for the inevitable rainy day, and saving for retirement if that is what we wish for.
Blaming Corporations, the 1%, the Republicans just makes you losers and victims. If you don't like it, move to Cuba. I see pictures all the time of Cubans living a life of luxury and relaxation!
So reading these threads it's republicans blaming democrats and democrats blaming republicans. Considering that over the last 50 years we've had a pretty decent split between both parties being in control, I'd say you're all TOTALLY IDIOTIC.
I live in an at-will work state and with below average overall tax rates. The state has one of the lowest coverage rates for health insurance and a less generous pension system. Yet, despite all of this, it has below average consumer credit scores and personal income levels.
I perceive that those conditions has neither helped most people living here get closer to retirement nor help it avoid economic crashes (the Tech Crash was pretty harsh). We avoided the real estate crash but only because HELOCs and cash-out mortgages are banned in the state (darn those regulations huh?).
Before you respond, consider that I am posting with the luxury of perspective of someone who could be among that lucky 8% in the story. This country has serious issues and they will not be resolved without a major overhaul of its retirement systems and economic philosophy that NEITHER side of the political spectrum will like.
And, if they lifted the ban on Cuba, I would love to retire in a tropical paradise (once called the Riviera of the Carribbean). What about you?
Good to see that some folks get it. The two parties are merely two faces of the same coin. Notice how, in between bickering, the congress got together to pass the Patriot Act and NDAA. Only dissenting voice heard was Ron Paul, but hey, he's crazy....
Will be partial retirement only, plan to work PT and earn within limits allowed by SS guidelines for as long as health permits--into 70's, god willing.
Only government workers get to retire by the age of 60. Everyone else has to keep working to pay the taxes that fund government pensions.
NYFD pensions have surpassed the annual operating costs. Yet just try and speak about the abuses and cut-backs. Gov. Cuomo is working on implementing a new pension tier for NEW employees yet the unions are ready to riot.
As long as day traders and stockholders continually demand a return on their investment, and as long as members of congress are allowed to stay in office forever -- then get a lifetime pension for never doing anything constructive -- there is no hope for anyone who wants to retire. Congress raped the Social Security funds to spend more on entitlement bills, so nobody under the age of 30 will even get Social Security when they reach "retirement age", which will soon be set by Congress up to 82 years old. Congressmen are laughing all the way to the bank with YOUR MONEY.
Lost my husband in 08 due to brain tumor, then my job in 09, and was unemployed for one year, had to use what was left of retirement to hold onto the house and pay bills, so nothing left, I will be working well into my seventies. Not what we planned, not what many planned. Hopefully my health will hold out because I'm two years to Medicare age and have no health insurance, it sucks.
my best wishes for your future.
How can we retire when we have a jackass of a president who expects the few of us left with jobs to support his base of voters who refuse to work or pay taxes?
I am a life long liberal.
I pay taxes that would make your little head spin and I work, boy do I work. Keep your slurs and snotty remarks to yourself.
I suspect you wouldn't know a lie if it walked up and kicked you in the shins.
My your Godbama return the Unemployment Line, and may your beliefs be shoved and mixed with your own Fecal Matter. >:-O
One of my retirement accounts bounced back from the crash to what it was before the crash, but hasn't grown since. That is 5 years of growth lost. Haven't had a raise in 4 years. If I retire at 65, I've got 14 years to go and my retirement accounts aren't even close to what I will need to have 60% of my current pay for the rest of my life. Despite the economy, I'm going to save as much as I possibly can between now and then, and hope for the best. As a phenominal money manager and saver, my husband's retirement account is looking pretty good, but you never know what will happen in the future and I shouldn't count on that.
I have read most of these posts and frankly many of these people have created their own hell. We came to USA 20 years ago with 40 thousand dollars,and after 18 years retired at 63 with over a half a million dollars. We put 15 per cent of our income in 401 k, bought a modest house (not an investment house) put 3 children through college (1 lawyer and 2 PHD's). Yes our 401 k went down as everyone's did. We have not used any of that money to date, and don't expect to touch it until we are 70.5 years of age (then we need to start taking some out). People ... if you are in your 40's or early 50's you can do it. Stop moaning, pay off your bills and SAVE.
So you have 1/2 million in savings plus the 401k? A lot easier with 2 incomes, but still a lot of work. Good for you!
well see there is your luck. I could never retire and .5 million and make it. If I could I'd retire tomorrow.
You have the advantage of still being able to collect your full SS allotment and Medicare. Can you promise the same for younger people over the next 20 years? $500,000 is not enough (not even remotely) without that secondary support system.
Unless you are in the top 10% (as we are BTW), it seems unlikely that it would be possible to save enough over a working career to completely support two people without some outside pension system for 30+ years. The numbers just don't add up. This is why 2/3 of retirees depend on SS for the MAJORITY of their retirement income.
Some people create their own hell but America as a society also fanned the flames. Most Americans don't have any demographic data to back their arguments. So they spout off the top of their heads not knowing the larger picture.
How'd you get the 40K? After 30 yrs invested in a loser who left me 150k in debt, I'm still trying to break even, let alone save for retirement. I will be working until I die as I'm older and my health care costs are astronomical (just the premiums are over 60% of my income).
By the way ... if your 401 k, or RIA has not come back change your investments including your advisor. Ours have all come back and then some.
I was thinking the same thing Richard. I took a belt in 2008 like everyone else but was recovered and above those levels by 2011.
Do people realize that the S&P 500 (and the broader stock market) has been up 8 of the last 9 years? You'd think it was the opposite from reading the doom and gloom on here.
The S&P 500 is still 8% below the highs it reached in 2000 and again in 2007.
Peter, true but if you stayed invested and bought at those lower prices you should be way ahead of the game by now.
Who needs to retire? The USA and Europe are full of unemployable people. I need to keep buying and spending and paying taxes to support all the losers. I just need to do it in the most tax advantageous state. Jobs aren't for everyone - besides - all the drug dealers and people doing illegal things are doing just fine. The fact that they don't life as long is an occupational hazzard! If they were so employable these people would already have jobs anyway. The job pool is shrinking and the unemployed are growing. It's a trend that will continue forever with technology and disruption causing most of the problem. Hopefully the internet and their cell phones will keep them content. I saw a rag tag homeless guy with a begging sign on the freeway on ramp this morning. He was on a cell phone. Don't worry about him - until he gets hit by a car he seems to be doing just keeno!!
My husband and I (in our mid-30s) fully intend to retire by age 60 - our kids will be grown and we plan to travel. We both max out our contributions to our respective company retirement plans as well as our individual IRA accounts, plus make monthly contributions to our savings accounts. So, yes - with responsible spending, budgeting and planning, retirement before age 60 is absolutely possible.
My husband and I are in our early 40s, have less than $50k in our 401k and nothing in savings. I say this w/ no malice whatsoever, but unless my mother passes away before we turn 65, we will most definitely be working beyond typical retirement age. She will be leaving us a nice nest egg, but a lot of it will go to paying off student loans. I'd rather have my mom around longer and keep working, frankly, as long as we're healthy.
Love it or leave it! If you were unable to save for retirement, you only have yourself to blame. Stop being two-faced. Stop cursing the US for your inability to retire and then screaming at the top of your lungs "God BLESS THE USA!" You either love all of it, or you leave.
I'm not really into to the whole "love it or leave it" mantra, but I will say this......
It has NEVER been easier for the little guy to save and invest. 30+ years ago it was WAY harder, brokerage firms only catered to the wealthy. Buying a single stock cost $50 for one trade, 401k's and IRA's were non-existent. There was a real barrier to entry for the little guy.
Today, 401k's are the norm, Roth IRA's are a great deal for all who qualify, you have Ameritrades and Scottrades at your disposal for $7-$10 per trade. Mutual fund companies like Vanguard, Fidelity, and T Rowe Price make it easy and inexpensive to buy mutual funds. AND............. there is so much FREE information on the Internet to learn about investment vehicles and strategies, it's unbelievable.
If you can't save and invest with everything available today, you're not trying.
Sounds good but when you encounter the theives and whores of 2007/2008 as you are forced to retire in 2009, due to health and hospital negligence, you may just shine a little different light on the subject. How about acts of Gd?
Here's the TRUTH:
Only 7-8% of households have $1 MILLION in investable assets (that does NOT include the primary residence).
How much income does that produce with 80% certainty for 30 years? $40K. Can you support you and your spouse (including health expenses and long-term care insurance) on that? AFTER TAXES. With reduced SS and Medicare support?
If you can than you must be living in Sweden, Canada, France, Germany, Denmark or Switzerland because it is not going to balance in the U.S. of A.
And, remember fewer than 10% of Americans have that much at ANY age no matter whether you inherited or earned it.
Are any light bulbs starting to come on?
Due to degenerative vertabra disc desease and sepsis acquired while hospitalized for vertabrae fusion surgery, I was forced to retire in 2009 with two children in school and tuition, etc. My IRA lost half the value in 2008 so I was forced to draw funds out at 50% of former value, just about wiped me out financialy. What I did have remaining went for medical bills, therapy bills, a needed new house roof, a new heating system, new well pump and piping into the house and new clothes washer and dryer, all criticaly neccessary.
Without MEDICARE and Social Security, we would have been sh-t out of luck, with Social Secutity and my pension we just make it from month to month, I pray that we do not have an emergency!
My undying Thanks to the G Weasle Bush Administration, the Banksters, the financial whores, the insurance whores, the political whores along with the immoral republican establishment, may they all find comfort in hell!
All of you people bashing the Republicans, get an education. Who started the raid on the Social Security Trust Fund? The Democrats. If private pension fund managers had stolen funds like our congressmen have, they would be in prison. Obama and Reid and Pelosi are the head thieves, and every member of Congress--- Democrats & Republicans alike--- have blood on their hands and our money in their pockets. If is imperative that we have constitutional amendments passed limiting congressmen to two terms, and if congress doesn't balance the budget every year, they get no pay and forfeit all of their retirement perks. Plus--- congressmen MUST live under the same laws they pass for the rest of us. No special health care plans, no cushy retirement plans, no exemptions, no special perks. That will take care of a lot of our country's problems that are created by congress.