I entertain you, will you save for retirement?|
Overall, 52 percent of workers saving
for retirement have less than $50,000 saved up for retirement.About
a quarter of workers are very confident about their prospects for financial security
during retirement. Another 44 percent are somewhat confident.Of
those who are very confident, 22 percent are not saving for retirement right now,
and 39 percent have less than $50,000 saved up.
The disconnect between confidence and savings levels is even more
pronounced in a survey recently released by the Employee Benefit
Research Institute. Its 16th annual Retirement
Confidence Survey, titled "Will more of us work forever?,"
reveals not only confidence levels, but also actual retirement savings
in estimated dollar amounts that polled Americans have accumulated
so far. According to the survey:
The survey makes for a fascinating read. Among the
predictable findings is, workers who earn more money and have higher
education levels also have more assets. Also, older folks have more
money than younger folks.
Take a look
at the breakdown of assets by age:
Reported total savings/investments among
(not including value of primary residence or defined benefit
|less than $10,000
|$10,000 to $24,999|
|$25,000 to $49,999|
|$50,000 to $99,999|
|$100,000 to $149,999|
Source: EBRI and Mathew Greenwald
& Associates Inc., 2006 Retirement Confidence Survey
Boomers are technically the 42- to 60-year-old demographic,
but if you look at the 45- to 54-year-old segment, a microcosm of
the boomer universe, an alarming number -- 58 percent -- have less
than $50,000 saved up. Only about one-third of boomers have $100,000
I don't want to sound like an alarmist, but even $100,000
is hardly enough to sustain anyone for any length of time if no
other source of income exists. A 65-year-old purchasing an immediate-fixed
annuity for $100,000 today could expect to get an annual income,
guaranteed for life, of between $6,800 and $7,400, depending on
the type of annuity selected. If you're accustomed to living on
ten times that amount, you'll need to have $1,000,000 at retirement.
(Figure it out at www.immediateannuities.com.)
Oh, oops. Let's not get stressed out about finances.
Instead, let's fast-forward 15 years and tune into the tale of Sam
and Charlie, as told by Sam. These guys knew each other since high
school, went off in different directions, but wound up under the
same viaduct in Greater Fort Lauderdale.
of a peripatetic idealist
"I worry about Charlie. He hasn't said
a word since 2019, when the government cut Social Security benefits by 50 percent
in its so-called drive for fiscal solvency. I knew that would happen. Heck, I
saw it coming 20 years ago.