6. Many people can’t afford to retire at age 65
Do you plan to work until you’re 65 and not a second longer? 46% of Americans say they plan on working past this age. Why? Because they have to in order to solidify their finances and avoid tapping into retirement savings early.
So, those who don’t have enough savings will retire long after they turn 65. 56% of Americans cited that the Social Security benefits they’ve accumulated so far are not enough to live on. The same study found that 49% of seniors want to work longer due to rising health care costs.
7. Pensions are a thing of the past for most non-government employees
Unless you’re a government employee or work in an industry that, miraculously, still offers pensions, you’re going to rely on other means for saving for retirement. 88% of private-sector workers received a pension in 1975. In 2020, that’s a thing of the past!
In 2006, there were 29,000 private sector pensions. In 2014, there were only 22,000. In 2016, as little as 15% of private-sector workers participated in traditional pension plans.
The decline in these programs has never been clearer, and it’s unlikely that we will return to this model. The responsibility falls on every individual to ensure that they have enough savings to last throughout their golden years.
