|Retiring Poor Can Be A Problem!|
While glaring can imply painful, or obtrusive in this case it is about how when faced with the economics of retirement many people find something is conspicuously wrong. Those retirees that have accumulated some savings need to understand the day when they could supplement their income by simply living off the interest on their savings is gone. Another problem is a great number of people have little in the way of savings. It is difficult enough to save but by the time they are hit up by life's problems such as helping out their children many people find it almost impossible. Unless they are fortunate enough to have made the decision to have some money placed in a lock-box before taking their paycheck it often simply gets spent.
|We Simply Assume Our Savings Will Survive!|
The rising cost of living is another issue. Even if a person is fortunate enough to own their home it is becoming more expensive to maintain. Property taxes, utilities, and replacing major components such as a roof or having a HAVC (heating, ventilating, and air conditioning) system have all surged in recent years as wages and materials push ever skyward. Those renting a place to live are witnessing the same thing. Rents are going up even in our low interest rate environment because the cost of services, fees, insurance, and things like real estate taxes continue upward almost in lockstep. This one of the main reasons some adventurous older Americans have moved to foreign counties after they retire. The global inequality gap is one of the big factors allowing Americans to live well on social security in ex-pat communities throughout the world.
|Saving Are Often Sorely Lacking click to enlarge|
Another problem we cannot avoid is healthcare. Anyone that has had even a simple test done recently knows prices are soaring. As people grow older many see their health deteriorate. This results in more visits to doctors, dentists, and specialists of all types. Most people are under the impression that once they turn 65 and they go onto Medicare it is free. The idea that the government will pick up and pay for your healthcare and that expense will vanish from your budget turns out to be a big disappointment for most Americans. The fact is that care in a nursing home is expensive. Staying there for a long time is a situation that can drive many retirees into bankruptcy or an early grave.
|Not How To Spend Time On A Cruise Ship|
This means the only way some retirees would be able to spend part of their golden years on a cruise ship would be if they got a job on one. Sadly, the cruise industry tends to work its employees like dogs and most older folks would never qualify. On top of no longer qualifying for many types of work comes the issues of adjusting to new social circumstances which may be out of your control. One thing is abundantly clear and that is most people would rather face these trials and tribulations while sitting on a big pile of cash.
Not everyone retires happy. Instead, the ugly reality for those finding they are financially between a rock and a hard place life can rapidly become very difficult. This is why any government policies that discourage savings have disaster written all over them. All the factors above, are and will, continue to nibble away at our ability to shape a comfortable lifestyle during what we have been told should be our "Golden Years." These years of life are supposed to be filled with love and joy, a time to relax and smell the roses. This is easier to do when you have planned and positioned yourself so money problems do not haunt your every step.
Footnote; A couple of posts relating to this subject can be found below. The first deals with the conflicts between the generations that are set to explode. The myth that funds have been set aside to provide for the social security payments and the medical needs of older Americans will soon be laid bare and the bill for such things is about to be laid at the feet of today's youth. The second explores the current sorry state of pension funds that so many people are depending upon.
https://Generational Conflict Is Posed To Dramatically Increase.html
http://Pensions Are A Financial Time Bomb.html