according to Wells Fargo's latest retirement survey that polled 1,500 middle-class Americans drew what i term as shocking revelations.
some of the findings from the survey found that:
a. on average, americans have only saved a mere 7% of retirement nest egg they were
hoping to build
b. respondents whose age ranges from 20 to 80 had median savings of only $25,000 when
their median retirement savings goal was $350,000
c. 30 % of people in their 60a have saved less than $25,000 for retirement
d. three fourths of middle class americans expect to work throughout retirement
joe ready, director of wells fargo institutional retirement and trust said:
"The fact that the vast majority of middle-class Americans expect to work well past the traditional retirement age has significant societal and economic implications. Will people be physically and mentally able to work later in life? What will it mean for young people entering the workforce? And, how does our system of retirement savings need to be reformed to help reduce the savings gap?"
my comments:
with the american unemployment rate staying at 1% below double digits, stock market swings and volatility and plunging home prices has clearly taken a toll on many americans' savings. and changes in pension plans and proposed cuts to social security and medicare benefits has also served to blunt optimism on retirement.
what mr joe ready said regarding older people being physically and mentally able to work in their golden years injects a sense of reality for americans planning to work past their retirement age till age 80.
i hope the findings of this survey will serve as a grim reminder to everyone here in our tiny red dot nation that nobody owes us a living and retirement planning is more imperative than ever before given that most of us will have many more golden years in our hands due to longer life expectancy which is definitely not static but is constantly inching upwards.
We think the American society are more accepting towards the older workers and retiring at 80 or later is fine for them. However, look at Singapore, we are considered old at 40 years old. Employers would prefer the FT or someone younger. It is rare to find a 40 year old waiter in our restaurants here.
ReplyDeletedear trade futures,
ReplyDeletegood point. and especially so in our tiny red dot nation, we have to compete with the so-called foreign talent for work and with old age, we have to accept that is comes with diminishing returns on our economic capital (i.e. the ability to stay employed).