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Report: Many Americans Will Not be Able to Retire Until They’re 80s

By JLP | June 14, 2011

Lou Dobbs: “The Baby Boomers have been a highly irresponsible generation.”

Topics: Retirement Planning | 13 Comments »

13 Responses to “Report: Many Americans Will Not be Able to Retire Until They’re 80s”

  1. BG Says:
    June 14th, 2011 at 8:59 am

    I think it is better to say:

    “Many Americans will never be able to retire”.

    Unless you have a government backed pension, forget about retiring. People less than 30-40 years old are going to have to pay for their parents/grand parents retirement (via their pensions and social security): while also trying to save for their own retirement (with no pensions or social security for themselves).

  2. 20 and Engaged Says:
    June 14th, 2011 at 2:20 pm

    That’s a scary thought! I’m going to try to retire as early as possible so I can enjoy life.

  3. Stacey Says:
    June 14th, 2011 at 5:48 pm

    You’d better have $4 million socked away if you’re trying to retire “young”…

    I can easily see the 80s as a retirement age since most people don’t even have $50,000, let alone hundreds of thousands saved. Kind of hard to live on a 3% withdrawal rate…

  4. Jack Says:
    June 15th, 2011 at 7:47 am

    The rule of thumb is a 4% withdrawal rate. $4 million will provide one with $160,000 per year.

  5. Paul Says:
    June 15th, 2011 at 8:32 am

    At the risk of being called a grammar Nazi, may I point out that the title should be “Many Americans will not be able to retire until THEIR 80s”

  6. glinka Says:
    June 15th, 2011 at 9:50 am

    Did anyone retire before there were Roth IRAs, IRAs, 401ks or any numberof the investments we have now? Maybe the irresponsible generation was the one that came up with social security. People rely on too much.

  7. BG Says:
    June 15th, 2011 at 11:50 am

    “Maybe the irresponsible generation was the one that came up with social security.”

    I think they knew exactly what they were doing. The first people to get SS-checks didn’t contribute a dime into the system. Eventually, someone has to pay: and guess who that is? (hint: people currently less than 30-40 years old).

  8. Stacey Says:
    June 15th, 2011 at 10:28 pm

    Jack, I know that the rule of thumb is 4% but if they don’t have enough saved a 3% rate would spread the money a little longer.

  9. Jack Says:
    June 16th, 2011 at 7:45 am

    “I think they knew exactly what they were doing.”

    Yes, they were buying votes — with other people’s money.

  10. John Says:
    June 17th, 2011 at 5:43 am

    “Many Americans” means anyone who is not in the top 2% and has not received the advantages on the Republican gravy train since 1980. Their taxes have been reduced from Reagan and Bush tax cuts. Their income has risen through large pay increases from the corporations they control. They have access to many financial advantages only available to people with large amounts of money to invest.

  11. Stacey Says:
    June 18th, 2011 at 6:21 pm

    What specific financial advantages do you think the 98% of Americans are unable to take advantage of? I can think of tseveral things the top 2% CAN’T do: 1. Saver’s credit 2. Earned income credit 3 Most likely the inability to avoid AMT 4. The inability to take a child tax credit 5 Can’t avoid paying income tax on US saving bond interest used for college 6 no student loan interest deduction.

    I could come up with more…

  12. BG Says:
    June 20th, 2011 at 8:53 am

    11) Stacey: the ability to have their income taxed at a flat 15% while also paying nothing into Social Security, Medicare, etc.

  13. Mike Says:
    June 24th, 2011 at 6:56 am

    Wow.. you mean “If it feels good, do it!” isn’t a motto of responsibility?

    I was born in the 70’s and I have to say when I look back on the 60’s in particular, I’m not surprised we’re in the mess we’re in. The WWII generation (A.K.A. “The Greatest generation”) begot what could be the most selfish generation in the history of mankind. The generation late lived for the moment and expected (and still expects) everyone else to foot the bill for them!