Retirement Crisis?

I’ve been seeing a series of articles about retirement issues–not sure if there are really just more of them or because I’m paying closer attention to them (since writing this blog).  I was interested in one that ran in our local newspaper, The Tampa Bay Times, on October 25th.  Written by Robert Trigaux and titled, As retirement crisis grows, will we just kick it down the road, too?

 Mr. Trigaux writes about some of the issues we frequently see mentioned in the context of such a discussion (and some about which we have previously posted). Mr. Trigaux notes specifically some of the issues we face in this country:

Look at what we are facing. Recession and slow recovery. Job losses. Stagnant wages. Investment stumbles. Disappearing pensions. Financial illiteracy. Loss of home equity. Excessive debt. Rising cost of living. Lack of discipline to save. Living longer. Low interest rates. Fear of the stock markets. Student loans…That unfortunate U.S. addiction of living beyond our means. ..Mix these together for a perilous outlook for retirement in the country.

He goes on to reference a study by Wells Fargo:  “More than a third of Americans now say they don’t ever expect to retire but instead will have to “work until I’m too sick or die.” That’s one finding of Wells Fargo’s annual “middle-class retirement” survey of 1,000 middle-class Americans ages 25 to 75.”

The Wells Fargo 2013 Wells Fargo Middle Class Retirement Survey: Middle Class Americans Face Retirement Shutdown, was released on October 23, 2013.   The pdf of the chart of the results indicates that over 1/3 intend to work until at least 80 and over 40% find themselves unable to pay their bills and put away funds for retirement.

Mr. Trigaux also quotes Alicia Munnell, Director for the Center for Retirement Research at Boston College.  He goes on to provide three “takeaways” and concludes that a lower standard of living is in the cards for many retirees, as is adult children financially supporting their elder parents.