of that, many people base their retirement income needs on erroneous beliefs about expenses in retirement or fail to take advantage of retirement savings account opportunities.
Unless you work for the government, the days of receiving a monthly pension check after retiring are mostly gone. In 1975, around 88% of private-sector workers with a workplace retirement plan had pension coverage, according to a report on More than 1 in 4 Baby Boomers incorrectly assume American’s views of the retirement crisis by the that Medicare will pay for long-term care costs, according to "Boomer Expectations for Retirement", a National Institute on Retirement (NIRS). 2019 report by the Insured Retirement Institute, an In 2006, there were around 29,000 private sector association for the retirement income industry. pensions, but that number fell to 22,000 by 2014, according to the NIRS report. By 2016, only 15% of Around 1 in 6 boomers don’t participate in their private sector workers participated in a traditional workplace contribution plan. Only 55% of Boomers have any money saved for retirement, and nearly half pension plan, according to the U.S. Department of Labor. of the 45% without savings used to have retirement savings at one time.
8. Most people have no back-up plan if retirement arrives early Only 26% of workers have a back-up plan if they’re forced to retire early, according to the Transamerica survey. Factors that could prompt an unexpected early retirement include job loss, health problems or becoming incapacitated due to an accident. A retirement back-up plan could include savings, disability insurance and/or long-term care insurance in case retirement comes early due to unforeseen circumstances. 9. Possible Social Security cuts loom
6. Many people can’t afford to retire at age 65 Around 46% of Americans plan to work past age 65, and more than half of them say they’ll work longer mainly because they have to, according to the Northwestern Mutual study. Top reasons for planning to work past 65 out of necessity include not having enough savings for a comfortable retirement (78%), inadequate Social Security benefits to live on (56%) and rising health care costs (49%), the study found. 7. Pensions are a thing of the past for most non-government employees 18 Today’s BoomeR
Many people expect Social Security retirement benefits to fund a portion or all their retirement income. However, Social Security is fully funded only through 2033. After that, the government benefits program is only three-quarters financed. “Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing,” according to the Social Security Administration.
This article originally appeared on Debt.com and was syndicated by MediaFeed.org.