In a special report launching today, Eye on America: Retirement, CBS News explores the changing nature of retirement and how to prepare for the future.
Roughly half of all U.S. families have no money set aside for retirement, Federal Reserve data show. Not a cent. But even that alarming savings deficit doesn’t fully capture the emerging socioeconomic crisis facing what is, after all, a rapidly graying nation.
This is a serious problem for me and so I can empathize.
It’s not planning, but that most of these people have lived month by month financially their entire life. Look at the poor McDonald’s employees! Look at my own pitiful savings for retirement? I was mostly month to month financially too. If I do not get low-cost housing when I turn 65, I’m homeless! Am I fearful? YES!!! Do you have any idea of the pain and suffering we constantly feel being fearful? Do keep us in your prayers.
America is not the only nation facing this financial tsunami. The UK. Australia, Canada not to mention Greece and other European cot cases. All face the lack of savings for retirement and the continued increase in life expectancy is causing governments across the globe to increase the age entitlement for old age pensions. In Australia it is going to go up to 67, in the UK 70. Greece won’t be able to pay anything soon.
We have had compulsory superannuation rising now to 12 percent of gross salary for over ten years, but this hasn’t been in long enough to cut in yet.
I don’t know the answer. I have retired now for ill health since I was fifty five, and it is a struggle to keep going. Thankfully the government assistance for the disabled is increasing but it will never be sufficient to keep people above the poverty line. Thank the Lord He allowed me to work hard in spite of my asthma, and bad heart and accumulate a small super and a few properties and a reasonable share portfolio. But I saved all my life, knowing my health would fail early. I also insured my life to the hilt so my wife will not have money needs. She knows I am worth more dead than alive and is giving me funny looks lately.(Only kidding, love. Wouldn’t know what to do without her.)
Many of our aged cannot afford the drugs and bandages they need and turn off essential electrical utilities just to go week to week.
Luckily in Australia most people worked to own their own home and can at a pinch sell and downsize, but that is a hard emotional decision for a lot of old people. Most homes in most capital cities sell for above 500k to over a million dollars so there is some fallback.
You need above a million in savings to retire comfortably in Australia.
For those who have not got this in savings or property then it is a matter of relying on government pensions. A hard road ahead for the KFC worker.
Like Robert I don’t know of any answer in the short term.
In most parts of the US, a paid for house is much cheaper than a small apartment, and even a home with a mortgage can be cheaper than an apartment. Not only that but a senior with a home can rent a room or two and share the house.