Retirement has always been a somewhat daunting endeavor, but in recent years, pessimism toward this momentous event has increased considerably. With the current state of the economy, this shouldn't be too surprising. To help you understand this growing trend, we have compiled a few facts that you should be aware of.
Fact #1: Many people are not saving like they should.In order to stay optimistic when it comes to retirement, a person must save enough to fulfill the lifestyle he or she desires. Unfortunately, the majority of individuals have admitted that they are not doing enough to save.
According to a survey from the Employee Benefit Research Institute, results are showing that many respondents are focusing on more immediate concerns, in lieu of saving for retirement. Often, these concerns are necessary, such as medical costs and repairs to their home, but that doesn't change the fact that less people are saving for retirement, and it's difficult not to be pessimistic about that.
To put this information into straight numbers for you, a reported 60% of those surveyed had less than $25,000 saved up, excluding such things as home equity and defined benefit accounts. But if you think that's bad, just consider the fact that 30% of those specific respondents stated that they had less than $1000 in savings. That's enough to make anyone fear retirement.
Fact #2: Unemployment remains at a high level.
It's no secret that one of the biggest threats concerning the nation right now is the unemployment rate. As stated on the website for the Bureau of Labor Statistics, the average in the United States is currently 8.3%. While some members of the government attempt to spin this into something positive, since the rates for many states and cities has dropped, that number is still quite high. And the drop is slow, to be sure. For obvious reasons, this causes stress when a person thinks about retirement, because they're fearful that they will become part of the statistics.
Fact #3: Job security is a great source of stress.
Not too long ago, most employees seemed to feel that their jobs were secure, as long as they worked hard. But now that doesn't seem to be enough. In fact, some employees feel as if their job security is completely out of their control. And who can blame them? With companies like Kmart, Sears, Kodak, Circuit City, and Blockbuster all experiencing financial problems resulting in layoffs, store closures, and complete shutdowns, being confident about job security isn't an easy feat.
Fact #4: Medical costs continue to increase.
You've probably noticed that many people seem to be on a health kick. Fast food restaurants are even getting in on it, and the belief is that if companies don't keep up with the growing trend of being healthy, they will go the way of the dinosaur.
Unfortunately, as you grow older, all the healthy snacks and fat free yogurt in the world often can't help your health from degrading. This concerns a great number of people trying to plan their retirement, because medical procedures, check-ups, and prescriptions are not cheap. Thanks to advanced technology, we can treat and cure more than ever before. But those treatments cost quite a bit of money.
Medicare is a great option, but future retirees realize that not every penny will be covered. This means that you must calculate health care into your retirement plan, and because of the growing costs, many are afraid that they will be unable to deal with the expenses.
Source: http://firstsecurityfinancialshow.com/blog/bid/128209/People-Still-Pessimistic-About-Retirement
No comments:
Post a Comment