As you head into work today you are probably looking forward to the day that you can retire and enjoy the fruits of your labor. But, whether you realize it or not, there are many Americans who expect to work until the day they die.
“A number of people had their retirement savings slashed to very small levels. A number of those folks lost their jobs and had to use their retirement savings. And even though they might be back to work they are almost starting over at square one,” Lewis explained.
Unemployment, lower salaries and not enough savings are the big reasons. But Lewis says another reason is that many of you are still supporting your adult kids.
“Parents have to work more. They are carrying extra bills. On top of that some parents have had to take out a second mortgage on their house in order to cover some of the educational expenses that some of their have racked up,” Lewis said.
Lewis says that 20 years ago, only 5% thought they wouldn't be able to retire.
“Twenty years ago, the thinking we see today would be very rare,” Lewis stated.
So what’s changed?
“We’ve transitioned to these defined contribution plans because they are less expensive for businesses to maintain. The risk is on the employee to invest wisely and hope that it grows enough to have enough to sustain them,” Lewis told KTRH.
There is some good news. We're doing better than England. 19% there say they won't be able to stop working.