Why Many Americans Will Never Retire

[marmar]

from 24/7WallStreet:





Economists have expected for some time that many Americans will need to delay their retirements and work well into their 70s. There are no longer sure sources of investment retirement funds because of the volatile stock market and the drop-off in housing prices. Those who were frightened out of the market in most cases sold too soon and did not get the advantage of the run-up in the market over the last year.

American small business owners have begun to defer retirement, and a growing number say they will not retire at all. They will either be forced out of work by ill-health or will simply die with their boots on.

According to a new Wells Fargo/Gallup Small Business Index poll, “Nearly half, 47%, of small-business owners now plan to never retire until forced to do so for health reasons — up from about 4 in 10 in 2005 and 2007.” Another 41% plan to cut back on work but will not retire.

The survey also shows that business owners will retire later than planned. “When asked about a target retirement age, 69% intend to retire at age 65 or older — up significantly from 41% in 2005 and 52% in 2007.” ...........(more)

The complete piece is at: http://247wallst.com/2010/10/02/why-many-americans-will-never-retire/#ixzz11OX1YO5P

[Javaman]

1. we had a new company take over our 401k plan here at work...

we all had to go to the "roll out" for the new information.

The presenter was a nice enough person, but when she asked the "snarky" question as to peoples retirement plans, she offered up several questions. One of them was, "who here plans as dying at their desks for retirement?"

Half the room raised their hands.

[Tansy_Gold]

2. I am in this group

Self-underemployed, with earned income supplementing social security and vice versa.

I mentioned to a friend (age 72) a few days ago that I would never be able to not be working. She laughed and replied, "Oh sure you will. You're only working because you're still young yet." I merely reiterated my statement.


This will become more and more true as those who still have jobs take on the responsibility of providing for friends and family members who do not.


TG, reasonably lucky

[Statistical]

3. My coworkers think I am crazy.

I put 10% (pretax) into retirement each year. I don't have cable, don't have landline, have a basic cellphone. I keep cars for about a decade, and have 30 yr fixed mortgage making extra payments.

I think I have pretty good income (could always be more) and I am unsure when I will be able to retire. A lot will depend on things outside my control (future tax rates, how much will SS pay in 2050?, how much will future inflation erase all my gains?).

People living paycheck to paycheck (even when the paychecks are large) I honestly don't see how they will ever retire.

[Uben]

6. " I honestly don't see how they will ever retire."

They won't be able to living check to check, unless they inherit money, hit the lottery, outdo Ken Jennings on Jeopardy, find the Holy Grail, bring OBL in, or marry money.

[awoke_in_2003]

7. "I honestly don't see how they will ever retire"

I have pretty good life insurance- at least my wife will be able to enjoy it.

[LiberalFighter]

4. Just a reminder. This poll is about small business owners. Not employees.

[awoke_in_2003]

and it is probably worse...

for the general population. Once they raise the SS retirement age to 70 (which they will, and it will probably be dems that make it happen) the deal will be sealed.

[awoke_in_2003]

8. double tap...

good at the target range, not so much when posting :)

[mainer]

5. A reflection of basic American insecurity

I suspect that many of these small business owners could actually afford to retire. But the mindset of many small business owners (and the reason they work so hard) is that they feel financially insecure. Their health care isn't assured, there's no safety net, and they feel that no one will catch them if they fall. So they overcompensate by working longer and harder into old age. If this country had universal health care and financial protections for the elderly, I bet a lot more small business owners would retire.

(Speaking as a small business owner myself. Who will probably never retire.)