The Huffington Post published the following piece on May 25. The idea—parents saving for their children’s retirements—left several readers frustrated. Yet parents have always been leaving bequests for their children; this piece recommends a specific type of bequest—a retirement account or annuity, left at death. I am reprinting it here as this week’s post.
There are currently about 35 million people age 65 or older living in the United States. Last year, the leading edge of the population tsunami that is the Baby Boomer generation turned 65. By 2030, the nation’s population of 65 or older will more than double (PDF), reaching 72.1 million people according to the federal Administration on Aging.
The increasing number of elderly Americans means an increasing demand for services, which will strain public resources at all levels. The demand will be great, but it is nothing preparation can’t take care of, and the time to prepare is now. Unfortunately, the economic recovery underway in the U.S. is slow and halting. The consequent lack of tax money means governments will likely be unable to handle the wave of elderly citizens that will soon engulf many communities. Continue reading
Some of you may have seen the Wall Street Journal special report on retirement earlier this week. Several topics were covered, and while we definitely plan to discuss a few of them, one article in particular grabbed my attention. A lot is written about where and how to retire, but this piece talked about a decision many of us take for granted… when to retire. Continue reading
The future looks a little less than bright for members of the younger generations. Research shows that the majority of Americans believe it is unlikely members of Generations X and Y will have a better life than their parents. At the same time, some members of these generations seem disillusioned with the current state of affairs and express pessimism that they will have a traditional retirement. Adding insult to injury are several popular myths that tend to blame these falling standard on the members of Generations X and Y.
I was born on the cusp between Generation X and Generation Y (a.k.a. the Millenials). As a member of the middle-child demographic recently dubbed Generation Catalano, I have some insight into how members of both of these generations view retirement. And I have to say, it isn’t pretty.
Pessimism and the American Dream
According to the results of a spring 2011 Gallup poll, confidence in the American dream is faltering. Defined by Gallup as the opportunity for each generation to earn a better life than previous generations, the data show that indeed, the American dream appears to be slipping away.