The way Americans think about retirement has shifted.
For whatever reason, we’re less invested and concerned than we used to be. It was a priority to make sure we take care of ourselves and our future. Today’s generations don’t seem to care as much.
According to a new survey by Edward Jones, less than half of us contribute to a 401(k). When they asked those who have a 401(k) if they knew how much the monthly fees were, half of them had no idea there were any fees.
Ameritrade asked in a related survey if they knew how much they were paying for Netflix and other streaming services, and 96% said they did.
37% wrongly assumed they didn’t have to pay fees on their 401(k).
Surveys also found that only 37% are contributing to their retirement accounts and 18% through a health savings account.
These numbers are astonishing. It would appear as if Americans view retirement as a goal they should tap into later in life, but it’s not something they need to be concerned about right now. It reveals a real lack in financial concern.
Throwing in the Retirement Towel
If we take a good look at the last 15 years or so, the market has been virtually dead money. There’s a reason why a lot of baby boomers now plan to work until 60-65. They might’ve had a plan to retire at 45, but the market didn’t permit them and now they’re behind on their savings.
With all the rumors that social security might be dead in the future, regardless of how much we put into it, and the shaky evolution of the market, it’s scaring people away from investing. With health care costs shooting through the roof, the volatile housing market, and stocks that change with the weather, it’s making retirement investment into a crap shoot.
As Gen-Xers head ever closer to retirement age, they’re either not as concerned about retirement or see they have very few options that is guaranteed to last through their golden years.
According to experts, the best plan of action is to diversify their savings. Don’t put all your eggs into one basket and risking losing it when the market sours. There are recession-proof stocks, commodities, and other investments.
Either way, working well past retirement age is never ideal. We can only hope at this new optimism in our economic recovery continues. It allows each generation to have renewed faith in saving for the future.
