Only 2% of Americans have an adequate pension or retirement account. Yet while the picture appears to be doom and gloom our experts offer sound advice- it’s not too late to turn the picture around to be able to retire with dignity.
Joining host, Dennis McCuistion, are guests:
- Alan Goldfarb, CFP, AIF, MBA – Managing Director: FSG Advisors
- Brooks Hamilton – Attorney, Founder: Brooks Hamilton and Partners
Inflation, lack of savings and investments and the last several years’ economy has changed the economic landscape for many Americans; making it almost impossible for many to retire. 95% of Americans may well run out of money in their retirement. The American dream of retiring with dignity is gone.
Compounding the problem is increased life expectancy, which has gone from 47 years of age in 1900 to 77 years; a gain of 30 years in less than 100 years. In 1900 retirees in the US comprised less than 5% of the population and lived only a few years past retirement. Today retirees are 1/3 of the population and live for decades past retirement.
With inadequate investment returns, some 401ks actually showing a negative return (when adjusted for inflation), and pensions, social security and savings on shaky ground, how will retirees maintain their lifestyle and pay their bills? In 1970 Americans saved 10% of their pay. Today they average 1-2% savings. Why did worker savings nose dive? Today: 29% of Americans have savings of less than $1000.55% of Americans did not save 1 cent last year.34% of adults say they have no money saved for retirement.Americans have $772 billion in credit card balances.Last year more Americans filed for bankruptcy than graduated from college.Last year more Americans filed for bankruptcy than filed for divorce.42% of Americans live paycheck to paycheck.55% spend more than their annual income.33% of retired Americans rely almost solely on social security payments. Tune in to learn more about American retirement.
Talking about things that matter… with people who care.
Niki N. McCuistion
Executive Producer/Producer
Organizational Culture, Governance and Strategic Planning,Consultant and Problem Solver
214-750-5157
nikin@nikimccuistion.com
Be sure to watch more McCuistion TV programs on our website www.McCuistionTV.com.
I graduated high school in 1979 in a small town in California. My mindset was that I would get a job at a major employer, give 30 good years as a dedicated worker, and retire comfortably (enough). What I found in the real world was quite different. Just the idea of being able to stay with a single employer was already a crumbling ideal. I found myself working for several companies and making paltry wages for most of those 30 years. I worked upwards of 90 hours a week just to get by. It was a great relief in my mid 30’s when I could finally afford insurance on my (old) vehicle. I finally felt that I was at least a fairly respectable citizen by that point. What I did not know when I graduated high school, the ideal I had been fed all my life was already at least 5 years dead.
I did not mention college. The small town I went to high school in did provide guidance counselors, but they were concerned only with getting us to make it out of high school by graduating with a passing grade. I found myself in a time when college loans were only for minorities and the middle class or above. My Grandmother’s paltry $300/month pension did not qualify me for financial aid in those days. So I worked while attending junior college until I had to give up school for full time work to pay the costs of living. Even with my GPA of over 3.5, I was not eligible for academic scholarships, at least not that the counselors could find.
The conversations we are now having over 30 years later about saving and investing should have been the norm when I was beginning high school. A few years ago my body finally gave out from giving my all to employers and not looking out for my own welfare during those years. So now I am disabled and squeaking by on Social Security only, while in my early 50’s to boot. But this is not just about finances. My generation and those of the past had a cultural code of working hard and giving all, and for a job well done we thought we would receive a good retirement. My grandfather had a decent home on a nice, but small piece of land. And so I thought, coming out of high school, I should be able to achieve the same. I do wish that retirement goals and strategies had been discussed in my family and at school before I entered high school.
In my late 30’s and early 40’s I was appalled at the current youngsters that were entering the workforce. They seemed so selfish; always it was “me, me, me.” They had no commitment to their work or their employer. Now, it seems the XYZ generations are not only at the “me, me, me” stage, but “now, now, now” as well. In my opinion it will take another generation to actually achieve what we as a society are discussing now in terms of retirement. My generation’s grandchildren may finally be able to reach the compromise between giving all for their employers and focusing solely on their immediate gratification. Cultural shifts seem to take a couple generations to make their mark on society as a whole in this country. At least we are having the conversations at last. In a more perfect world shows such as yours could by sent back in time for generations past. Thanks for providing an impetus for dialog on issues that concern us all. As they say, hindsight is 20/20.