Why the 99% May Never Retire

[jeffrey]

Economists say that we're in a recovery, but try telling that to ordinary middle-class Americans. As hard as it is to make ends meet right now, Americans are extremely pessimistic about ever getting to retire with any kind of financial security.

A recent survey from Wells Fargo (WFC) highlighted the current plight of the 99%. Among 1,000 people who responded to the survey, more than half were most concerned day-to-day simply with finding money to pay their monthly bills. Understandably, that has pushed less pressing needs like saving for retirement onto the back burner -- only a sixth of respondents said it was a key concern for them right now...

Why the 99% May Never Retire - DailyFinance

[disneysteve]

70% of those surveyed believe that the stock market isn't an ideal place to invest for retirement

When asked how they would invest $5,000, only 18% of those aged 25 to 29 would put it in stocks, compared to 37% of those in their 30s and 24% overall.

I think statements like this really identify a lot of the problem. It isn't so much that people can't afford to save for retirement. It is that they don't know how to save for retirement.

Three in 10 believe they'll have to work to age 80 or beyond in order to have a comfortable retirement

40% of middle-class Americans would put a retirement savings windfall in a CD or savings account

If they put all of their money in CDs and savings accounts, they will have to work to 80 or beyond before they can retire, and probably not even then. Of course, how many jobs are there that one can expect to still be doing when you're in your 70s and beyond?

[RickLeibo]

ugh!

It sure is a sad sad state we are in. Our Middle class has been crushed over the last 5-6 years and no sign of recovery! Unless we as a country find a way to get a fiscally responsible government, our middle class will never recover and we will become a 2 class society.

[RickLeibo]

moreover

I personally make a very good living and with 3 daughters, I see no chance I will ever retire.

[jpg7n16]

I personally make a very good living and with 3 daughters, I see no chance I will ever retire.

Hi Rick,

Can you make a new thread with the details of your financial situation? It may seem hopeless with many expenses you have, but we can help you plan for a better tomorrow than the path you're on.

Have you ever run the numbers? How do you know you'll never be able to retire? What if by making a free post (in your own thread preferrably) you were able to change that?

[elessar78]

A recent survey from Wells Fargo (WFC) highlighted the current plight of the 99%. Among 1,000 people who responded to the survey, more than half were most concerned day-to-day simply with finding money to pay their monthly bills. Understandably, that has pushed less pressing needs like saving for retirement onto the back burner -- only a sixth of respondents said it was a key concern for them right now.

I can sympathize, BUT is it truly just bare necessities "bills"? I feel like people give into $100-$200 cable/internet bills and $100-$200 cell phone bills, $100-$200 a month per kid activity fees. So yes, I can see how just by living a "normal" life you're $600 over what can be considered necessitites.

[disneysteve]

I can sympathize, BUT is it truly just bare necessities "bills"? I feel like people give into $100-$200 cable/internet bills and $100-$200 cell phone bills, $100-$200 a month per kid activity fees.

Very true. I find that many people now consider cable and cell to be utilities, counted among their "necessity" bills.

[elessar78]

I personally make a very good living and with 3 daughters, I see no chance I will ever retire.

Sorry to hear about your financial difficulties but a good income is no guarantee if the cost controls are not in place as well.

Like the gov't you criticize, we can't fund everything.

[elessar78]

Very true. I find that many people now consider cable and cell to be utilities, counted among their "necessity" bills.

Yeah, it's bill inflation. And I'm not saying I'm immune from it—I fought getting a cell phone, then getting a smart phone, and now I'm fighting the need for cable.

Real wages has not truly kept up with the rise of prices.

Retirement, golden years type retirement, is an artificial concept that's not been around for a hundred years. Maybe it was a sustainable concept for a very small segment of the population. Who says that you hit your mid-60s and you are entitled to leave "the grind"? We all have to dial back at some point but who says you get to stop working?

I personally don't save for retirement so I can quit the "rat race" my career doesn't feel that way to me. It makes me feel productive, keeps me sharp, and gives me challenges—I don't see that changing. If it does, then I plan on embarking on a new career. Again, through time, I won't be able to work the long hours or, God forbid, I can't work at all— that is what the saving is for.

People "we" know who were retired in the 80s and 90s lived through an era where pensions and social security and, eventually, 401(k)(enacted 1978) were the norm. Now the game is different. We still have social security but more exposed to the volatility of the market, that wasn't there with pensions.

[elessar78]

History of retirement, NY times

The History of Retirement, From Early Man to A.A.R.P. - NYTimes.com

[disneysteve]

Yeah, it's bill inflation. And I'm not saying I'm immune from it—I fought getting a cell phone, then getting a smart phone, and now I'm fighting the need for cable.

There is a BIG difference between having those bills and thinking of those things as necessities. We have cell phones and cable TV but if money were tight or we weren't able to save for retirement as a result, we'd trim back or cut them out all together.

[elessar78]

I apologize if I've posted this before, but I used to work for a cable/internet provider and our market research showed that 80-90% of people thought of their cell phone and cable tv as utilities—i.e. something that could not be gotten rid of for any reason. Good for our company, but bad for household budgets. The top three being the real utilities of water, electricity, and heat.

[bjl584]

The school system in this country really needs to start teaching proper financial management and retirement planning. Kids come out of school knowing nothing about money other than to earn as much of it as you can so that you can spend as much of it as you can.

[JoeP]

The school system in this country really needs to start teaching proper financial management and retirement planning. Kids come out of school knowing nothing about money other than to earn as much of it as you can so that you can spend as much of it as you can.

This is very true, and something I've been saying for years.

Our school district (as well as many others in my area) requires a second language, starting at grade 7. No requirement for any kind of financial classes. So the possibility exists for young adults to graduate having a good command of Spanish, yet making financial mistakes that they could spend the rest of their lives trying to recover.

[EarlyRetirementJoy]

This is very true, and something I've been saying for years.

Our school district (as well as many others in my area) requires a second language, starting at grade 7. No requirement for any kind of financial classes. So the possibility exists for young adults to graduate having a good command of Spanish, yet making financial mistakes that they could spend the rest of their lives trying to recover.

Why is this the responsibility of schools? To me, this is the responsibility of parents, not schools.