It's been a long time coming, and we hate to be the ones to break it to you, but the Golden Age of Retirement may be over. The signs have been there for years, and the outlook grim, but at this point, there's just no denying the facts.
There's a good chance that you have a relative who is still living out his or her Golden Age. It's a little like window shopping. You can see what they're getting, and it's within your grasp, but there's something keeping you from it. Of course, that doesn't mean that achieving the equivalent of the Golden Age is impossible. It's simply going to take a lot of work.
Let's look at some facts, shall we?
Fact #1: Older Baby Boomers don't know how well they have it.
It's a bit simplistic to say that older Baby Boomers have it "easy." Easy is a relative term, one up for debate. But the fact remains that in a lot of ways, Baby Boomers have had a cushier time of retirement. Many of them are doing well for themselves financially, due to windfalls such as company pensions. Some even have sizable inheritances. And statistically, they have a greater chance of maintaining a good amount of equity in their homes.
Fact #2: The Great Recession was devastating.
It's been nearly five years since the Great Recession started, and two years since it officially ended. A number of people, too large a number really, were devastated by what occurred. Many of them lost their jobs, and some individuals approaching retirement had no choice but to retire. This financial crisis also cut down on the number of large inheritances that had been provided to Baby Boomers in the past.
Fact #3: Personal responsibility appears to be waning.
It is an unfortunate fact that many people play the "blame game." When something catastrophic happens, like a plunging market or the loss of their job, a number of people react by trying to find someone to blame. They accuse executives of wrongdoings, cast aspersions on those in the government, and even try to find fault with their own relatives who might have suggested a specific financial strategy that went wrong.
While some or all those things might be to blame, it is important that you also take some personal responsibility when it comes to your retirement planning. The truth is, many people aren't saving anything for their retirement. Not "a little." Not "just enough." Nothing ... or very close to it. Procrastination seems to be a part of the American tradition in a lot of ways. And as you can imagine, putting off saving for your future isn't exactly the best plan. Yet millions are joining the fray.
Fact #4: Spending has not stopped.
This is an offshoot of "personal responsibility." For several years, Baby Boomers became accustomed to a steady flow of cash. If they wanted to buy something, they bought it, often without looking at the price or the balance of their checkbooks. They knew they had money, and even if they began running low, they had a pension, inheritance, or some other financial windfall to held carry them through their retirement. Strangely enough, individuals who are now approaching retirement are also taking that same stance. The problem, of course, is that this Golden Age is over, and thus, so is the "willy nilly" spending. It's time to tighten those pocketbooks and realize that times have changed.
Source: http://firstsecurityfinancialshow.com/blog/bid/169444/Golden-Age-a-Thing-of-the-Past
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