Retirement is a long-stated goal of many who have spent their lives laboring, and for a long time it was assumed that nearly all people would retire. However, this is not true anymore, as due to the declining economy, in spite of proclamations by political and industrial figures, is forcing people to work so much that now forty percent do not believe they will ever be able to retire according to a report:
Almost 40 per cent of Americans lack confidence they will ever save enough money to retire. That number climbs even higher among older Americans, age 54 or more.
That’s despite nearly one in five Americans who said having enough money saved to be able to retire is their most important financial goal, according to a survey of 1,000 adults conducted by LendEDU in May.
More Americans said saving for retirement is more important versus those that indicated paying off credit card debt or building an emergency fund, according to the survey. However, slightly more respondents said buying their own house or apartment was their most important financial goal.
On average, monthly benefits for a retired worker from the Social Security Administration are US$1,468.39 or only about US$17,600 per year. (source, source)
These numbers are going to explode over the next decade, especially after the next economic recession happens.
Again, to those who are wise, this is a warning not merely to “work hard,” but to save up for the coming economic crisis, because with each crisis comes opportunity. Those who have saved up will be able to purchase assets and secure themselves and many will be forced to sell what little they have in order to attempt to pay their bills.
It does not guarantee that one will be able to retire, as nothing is certain in life. However, it does help to provide a “hedge” against economic turmoil, and drawing upon the experience of 2007, anything that one has will help.
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