Is there a retirement crisis in the U.S.?
If you are one of nearly 86% of Americans sensing they are living in the midst of a retirement crisis, you probably also feel that you won’t be able to rely on the government to bail you out.
Are you justified in thinking that your retirement is not safeguarded? And if so, what can you do about it?
Is the Crisis Real?
It might be.
According to a recent study reported by EBRI, nearly 45 % of Americans run the risk of falling short of money during retirement.
Other studies report that most Americans have less than $50,000 saved up for retirement.
It seems that most people are still counting on social security to cover the gap between savings and what they’ll really need during retirement.
Who is to Blame for the Retirement Crisis?
As the article “who to blame for the retirement crisis?” looks at, you might want to take a quick check in the mirror.
One facet of the problem is that folks haven’t saved up enough for retirement.
People overspending, relying on credit cards for staples, and not paying back owed debt has helped put this country in some real financial dire straits.
The stock market crash of 2008 can be at least partially blamed on consumer debt, and that comes down to people wanting the latest televisions, computers and smart phones.
Was it worth it?
The government has spent millions if not more in bailout money, but the solution is short term.
What will be done when your generation is set to retire and the stock market is at its lowest point?
How Can You Protect Yourself?
For starters, recognize that your retirement security is up to you.
Though Social Security will probably still be in place by the time you retire, no one can guarantee that outcome.
Why put your livelihood in the hands of someone else? Take control of your own retirement now, before it’s too late.
Nothing could be worse than sitting around waiting for that first Social Security check from the postman and discovering that it is far less than you can live on.
Living on Less
Next, you should look at your current lifestyle.
Are there areas where you can cut corners and sock more money into savings? Do you need to spend so much on holiday gifts, or can you cut the gift giving budget in half and put the rest into savings? Do you really need that expensive cell phone plan, or can you put up with a less than perfect plan that has budget pricing?
Trying to budget for 20 or so years of living with no work income is no easy task for anyone.
But instead of spending your energy blaming others, your time will be put to better use finding ways to take care of yourself and your family anyway.
That way, if the retirement crisis does turn out to be true, you will have safeguarded your security anyway.
Photo credit: BigStockPhoto.com
About the Author: Kate Supino writes extensively about financial matters.
