Retirement worries abound
Filed under: Retire
A survey by the Society of Actuaries has found that older Americans are worried about money. No kidding? Of course they are! Thanks to the interest rate slashing by the Fed, retirees are earning almost no interest on their avings accounts and CDs. And those conservative savings options are a big part of the portfolios of many retirees.
In fact, a retiree's savings account isn't even growing fast enough to cover the rising costs of food and fuel. Add to that concerns like paying for long-term care and health care costs, and many older Americans are very afraid of what their financial futures hold.
And here's a statistic to keep in mind: A 65-year-old man is expected to live another 17 years and a 65-year-old woman is expected to live another 20 years. Americans are living longer and that means they need more money in savings if they're going to maintain their standard of living into their late years.
If prices continue to rise while earnings from savings continue to dwindle, older people will likely have to rely more on their families for support as they age. Get ready for mom and dad to move in with you if things don't turn around for older Americans. Yikes!
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
In fact, a retiree's savings account isn't even growing fast enough to cover the rising costs of food and fuel. Add to that concerns like paying for long-term care and health care costs, and many older Americans are very afraid of what their financial futures hold.
And here's a statistic to keep in mind: A 65-year-old man is expected to live another 17 years and a 65-year-old woman is expected to live another 20 years. Americans are living longer and that means they need more money in savings if they're going to maintain their standard of living into their late years.
If prices continue to rise while earnings from savings continue to dwindle, older people will likely have to rely more on their families for support as they age. Get ready for mom and dad to move in with you if things don't turn around for older Americans. Yikes!
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
Recent Posts
- Fooled by free (10/07/2008)
- How to invest your money with a guaranteed payoff (10/07/2008)
- What the meltdown means to me, a married 25-year-old without a house (10/07/2008)
- Fantastic Freebies: Free breakfast at IKEA! (10/07/2008)
- What price revolution? Here's what a quality torch will cost you these days (10/06/2008)
Reader Comments (Page 1 of 1)
5-20-2008 @ 12:31PM
J W said...
Yikes ??? Retirement Worries??? Statistics for this Tracy:
98% of retirees do not want to move in with their offspring.
95% of retirees fiancially sacrificed during their lifetimes for the advancement of their children's education, marriages, and home down payments.
90% of retirees gave more to their children then they will ever receive.
85% of retirees children anticipate an inheritance from their parents
50% of retirees helped their children get their first job through contacts or working in the family business.
Most of the monies lost by the retirees are due to the financial wizardry of the generation they looked upon to help them in their "golden years".....not some CNA working in an ALF that will toss them out when the well has gone dry. Cry "YIKES" when you go to visit Mom at the nearby ALF on some day when you have nothing better to do.....and see a ratio of 40 to 1 old people to chilren.
Reply
5-20-2008 @ 12:32PM
J W said...
Here's some actuarial math:
1.) What would be the current cash value of a 2,000 set of braces, earning 5% per year over 40 years.
2.) What would be the current cash value of a 40,000 education over 25 years at 5%.
3.) What would be the value of "just being there for you when you needed it"......PRICELESS
Reply
5-20-2008 @ 12:51PM
J W said...
This article justs festers....
Most retirees are from parents who had little and then they had little. Both sets of generations worked hard long hours and saved what little they could to get ahead.
I drive by the homes of "Boomers" and then the homes of their children the "X ers" and I see only multiple cars, ATV's, motorcycles, boats and other must haves. I wonder how their savings accounts are doing?....or are they waiting for the reading of the will and the life insurance check naming them as beneficiary?
Reply