Wells Fargo bank asked 1,500 Americans who earned between $25,000 and $99,999 and ranged in age from 20 into their 70s questions about retirement, savings and Social Security for its seventh annual retirement survey.
Three-fourths of those surveyed said they expect to work in their retirement years. One quarter said they will "need to work until at least age 80" to live comfortably in retirement.
Of Americans who will work in retirement, "47 percent said that they are going to continue in the same job or a similar job of similar responsibility," Joe Ready, Well Fargo's director of Institutional Retirement and Trust, told Reuters Insider.
"That raises a lot of social and economic implications. Will they have the physical ability to work, the mental capacity? What does that mean for the younger work force in terms of coming through and looking to get ahead?"
Three-fourths of Americans said it is more important to have a specific amount saved before retirement, regardless of age, while only 20 percent said it is more important to retire at a specific age regardless of savings.
In terms of saving for retirement, 53 percent of those surveyed said they need to significantly cut back on spending now to save for retirement.
"People are overwhelmed. They're not saving enough," Ready said.
On average, Americans have saved only seven percent of their desired retirement nest egg, with a median of $25,000 saved versus a median retirement goal of $350,000.
"For several years now, we've seen that Americans are undersaving for retirement and a majority do not trust the stock market as a place to invest for retirement," Ready said.
"We did find a bright spot among middle class Americans - more than three quarters do not want to retire with mortgage debt. This is an important goal, particularly for younger Americans," said Laurie Nordquist, director of Wells Fargo Institutional Retirement and Trust.
Eighty-six percent of respondents said it's important to own their home debt free by retirement.
On the issue of Social Security there was an age divide. Those in their 60s expect Social Security to provide 46 percent of their retirement funding. But more than a quarter of Americans in their 20s and 30s expect no income at all from Social Security during their retirement.
(Editing by Greg McCune)
http://ca.news.yahoo.com/80-65-comes-re ... 25734.html
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"I have a PhD in biochem (graduated at 25 yo in late 80s) I am 47 now single dad with two teenage daughters, one in college. I will work well into my 80s then be completely dependent on Social Security, that is if it even exists.
Despite the education and always being employed I never made more the 80k/yr and presently make around 50k. The jobs went into decline in the early 2000, in the biotech and pharmaceutical areas they started the great decline in 2001. This working into the 80s is not due to lack of education or motivation for many of us, the jobs with a decent income simple are not there no matter how educated you are.
In my 30s I had thought to be a home owner now closing in on my 50s I realize I will never be, on the positive side the hosing market crash had little effect on me other then rent being too high for my income. Today for most of us car ownership is a problem and home ownership is not even a consideration."
"How can anyone retire when the government and schools keep hitting you with ever increasing taxes (property & school taxes)?? I believe taxes are also taken out of your social security check. Everyone has to live within their means except the government it seems. If this is a democracy why don't the people get to vote on property tax increases?? You know the definition of income used to be what you made working in another country, not here in the USA .. but over the years the crooks have changed that to "income is whatever we say it is! now fork it over, sucka!" I think it is a disgrace that retired folks have to continue to pay property taxes and school taxes when they are living on a fixed income, and if you don't pay it well the mafia comes with guns to get you out of the house you worked 30 years to pay for and then they put it up for sale. Rest assured if you continued to vote for Democans and Republicrats you'll get soaked even more."
"We cannot afford to retire. The big financial institutions ended that dream when the screwed up the economy. They got a bailout and big bonuses, we got shafted."
"Between my divorce and the economy, I have been put back to my mid-twenties 401K levels (I'm 53). I have no hope for my future in regards to ever being able to retire. I'm practicing saying "Welcome to Walmart" and "Do you want fries with that?". And I'm an IT tech at a major corporation. But since I'm not a government worker, I only pay for other people's pensions. Not mine. Irony at it's finest."
Working at Walmart: viewtopic.php?f=39&t=42044&p=333636
That generation was very much duped by the "American Dream" nonsense so it only makes sense that they are suffering this fate in disproportionate numbers. From buying homes too expensive for their income, having too many kids, and living beyond their means, they were ill-prepared to pay back the piper.jtest28 wrote: ↑April 26th, 2020, 1:17 amMy next door neighbor is 81 and still working 40 hr/wk. One of my co-workers retired 4 years ago at 65, but sure is broke off his ass now. He tried starting a small business selling knives and trinkets for extra income but it doesn't do well. I have another co-worker who just turned 67 and says he can't afford to retire. I think one thing that may be a factor in low social security is the birthrate isn't high enough to cover payment for the old. It's like it was first based and factored back when everyone had plenty of kids. Then they stopped. Some of it is people now days all think they are supposed to live in these great big brick houses. Even if one can afford said house, they spend any money they normaly could have saved, on paying the house off for 30 years. Then there's men, who at middle age, had to start over due to a wife divorcing him and taking a house that was paid for. That's what happened to the broke 65 y.o. co-worker mentioned above. Poor guy is 69 y.o. now and has to pay rent. I'm glad I have my house paid for. My friends have commented that I'm fortunate in that regard. But it was easy, I got the cheapest house I could find, and paid that f***er off in 18 months. That way the bank didn't make like 300% profit on me!
Most Americans fall into that trap, but the younger generations are realizing that being bound by consumer debt and unnecessary "stuff" is a prescription for lifetime slavery. We sometimes talk about the farm laborers who cannot pay off their debt so that they can leave the farm. Well these dream chasers are no different other than they owe more money.
This is true - however I think it is especially bad in USA, as there is no general social network regarding retirement/health insurance existing. There is no guideline what to do and many elderly people are just poor and continue to work until they die..
I feel sorry for these poor old people in their 80s in USA, who really live only for working and get a little pay just enough for daily needs.
In Continental Europe, the system is very different - unlike USA not only taxes, but also social contributions into the national insurance fond are really high - however it means you are fairly safe financially in case of illness, accidents, jobless and old age. Nothing to worry about how to pay medical bills in case of an accident or about being out of money when getting old or sick and cannot work anymore.
These social security payments/income tax which were deducted directly by my employers were about 40+ percent from my income, even when I was only 17 years old and still a minor with little income. It should be mentioned that the employer additionally also had to pay his part - about the same - for each employee... really very high.
The official employment policy is that if you are 65 in most EU countries you are out and another younger person should take over your job. Only few ordinary employees will refuse this offer - it does not make any sense to continue to work any longer for you. -
Your retirement allowance will be really good if you were working regularly and pay those social contributions over many years - in my case - since my 65 birthday - I receive about 75 % of my average income for doing nothing up to end of life with the very strict condition never to work anything again - you work, your retirement allowance will be stopped the same month. I accepted this offer from the retirement authority and received additionally also a separation pay of almost 1 year salary.
To continue to work? No way - I prefer monthly to receive my pension into my banking account.
There are other things to do for me - I ride on my motorcycle through the forest in Japan or sleep on the beach in Thailand....
I would be crazy if I refuse this offer, of course I retired - and another young man from my country who was 29 was happy to take over my work.
Is this Jester ?, I just went to your website and you appear to be a stud..
It is of course not just Walmart greeters. Lots of older people are using their accumulated institutional powers and contacts to take jobs younger men could do much better. Even with silly jobs like Walmart greeters, they may be displacing a man who could work his way up or is in turn displacing someone else, and even silly jobs are in short supply.
I agree with Cornfed, it does not make any sense that people in their 70s or 80s have a regular full-time job, while young people in their 20s are jobless even if they are willing regardless their educational background to accept any kind of job.Cornfed wrote: ↑April 26th, 2020, 3:54 pmIt is of course not just Walmart greeters. Lots of older people are using their accumulated institutional powers and contacts to take jobs younger men could do much better. Even with silly jobs like Walmart greeters, they may be displacing a man who could work his way up or is in turn displacing someone else, and even silly jobs are in short supply.
You should prepare yourself for retirement, especially in countries, where no national retirement authority exists which will offer you guarantee for regular pension payment and medical care up to end of life after you paid into the system while you were young and still working full-time.
They must have some good social security payments for people in Germany. In America, the average social security check is only about $1,450 a month.
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