Working, Saving, Retiring

Are you ready for retirement?

Source: International Living

Over half of us aren’t. Ultra-low interest rates, Social Security’s rising age for full benefits, and stricter rules on mortgages have combined to make it extremely difficult for families to maintain their pre-retirement standard of living.

The Federal Reserve compiles a survey of consumer finances every three years, examining household assets, liabilities, and demographics. From this information some researchers at Boston College have assessed what percentage of us are at risk in retirement.

In spite of a rising stock market and stable home prices, more than half of US households won’t be able to reproduce a significant portion of their pre-retirement income by age 65. This proportion has risen steadily for the past 30 years, ever since the Fed has been examining the data.

Source: Center for Retirement Research

Retirement is different today: gone are retirement parties and gold watches. Some elders continue to work because they want to, but many more keep working because they have to. If there isn’t enough to head for the beach, working longer and saving more may be the only option.

Douglas R. Tengdin, CFA
Chief Investment Officer
Phone: 603-224-1350
Leave a comment if you have any questions—I read them all!

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