Retirement is time to have fun, enjoy and relax from the fruits of one’s career that was worth the work. However, recent cases of recession have presented a tremendous toll on many Americans investments that they count on to fund for their retirements. Thus, many Americans face the challenge of not having enough cash to live on during their retirement. A Recent survey by the TD Ameritrade showed that about three-quarters of the entire plan for Baby Boomers place a major reliance on their payments for social security for their retirement. However the average check for Social Security is just $1,230 per month, and may not stretch as far as many retirees would wish (Reinhardt, 2003).
This problem is further because their many seniors who join the retirement with debt. Almost 65% of all Americans above the age of 64 had mortgage debts in 2010 according to the Federal Survey for Consumer finances. On the contrary only 27 percent of the seniors still owe debts for their mortgages in 1989 (Reinhardt, 2003). Since this time, the average of outstanding mortgage debt has tripled. Older Americans also face the problem of Credit card debts. The survey by AARP shows that over one-third of responders used credit cards for funding their basic living expenses such as housing payments, utilities, and food. The average debt loan was about $8,248. All these problems contribute to significant financial challenges including bankruptcy among the American older adults. There is over one-third of clients ending up bankrupt are above the age of 65. It is a report from the National Foundation for Credit Counseling. Thus, examining how American workers save for retirement, there are two things that are clear. First is that millions of Americans face the danger of not having enough money to maintaining their living standards after retirement. Second is that this problem is getting worse every year. The consequences of the savings shortfalls could be severe for both the national economy and the American families. A large household share has to be forced to reduce consumption during retirement, and they will be forced to rely heavily on charities, families, and government to meet their needs. Instead of staying in control over their economic lives, millions of Americans are forced to muddle through the old age years partially depending on others for financial assistances. They also have to accept to live significantly below what they had earlier envisioned (Reinhardt, 2003).
Facts about this crisis
The current data showing how American households get to build up financial assets and how they did so in the past indicates how the American public is struggling to prepare for their retirement. Data shows that they are becoming less well prepared as years go.
Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in graduate paper writing service.
