Tag: retirement savings

Americans bet the farm…

And the house, and the condo, and who knows what else, on their retirement.

It wasn’t too long ago I was sitting in the living room with a Lucent employee, watching CNBC. The host had never invested in a stock, but stayed pinned to the tube after hours, cheering on their retirement account (which was funded wholly with Lucent stock). Needless to say, they aren’t betting on that account to see them through the golden years anymore.

You will likely hear every reason known to man why “this time it is different.” Yet it never turns out that way. Diversification has and always will be the saving grace, but with 65% of Americans plowing their retirement savings into homes, I am just wondering what is going to be the straw that breaks this camel’s back.

Report states the obvious on retirement savings

Ok. If the national savings rate is negative and people are drowning in debt (no link needed there), then why would anyone need a fancy study on retirement savings to tell them about a problem there as well. You’d think people would actually try to keep food in the fridge and electricity in the bulb before saving for retirement, wouldn’t you?

Well, you get the study anyway. And guess what it says? Uh, the average US worker has paltry retirement savings.

Now a bunch of policy making types will step in to figure out how to solve the problem, and waste even more money. The problem is already clear – a consumption-based economy doesn’t bode well for savings. There – its been said. Now even the organizations funding these studies can save a little money.