Most Americans are in denial about their retirement; they see it as a problem far down the road or something they accept, yet have little idea how to solve it.
Nielsen, the market research firm has a specific demographic for 50 something executive couples “Diverting their high incomes into building up the long neglected nest eggs.” How do you quantify the problem for clients and get them to focus on solutions?
How Long Might Retirement Be?
People are living longer. In “Why Are You Not Dead Yet?” Slate shows life expectancy was 35-40 about 150 years ago. Today, it’s closer to 80.
Credit medical advances. According to the Centers for Disease Control and Prevention (CDC), US life expectancy is 78.8 years. It varies even more by county. If you are lucky enough to live in Summit, Pitkin or Eagle counties in Colorado, you might live past age 85. This has been described as having two lives, with retirement life often being longer than your working life.
Retirement – It’s Not What It Used to Be
Meanwhile, the nature of retirement has changed. Our parents and grandparents relied on defined benefit pensions and social security. Mitch McConnell famously said: “More young people believe they’ll see a UFO than that they will see their own Social Security benefits.”
As a financial services manager explained: “Retirement income will likely come from three sources: Social Security (and pensions), retirement savings and something extra from part time work.”
How Much Have Americans Saved for Retirement?