Despite the Dow hitting all-time highs, millions of Americans still have a dismal outlook when it comes to their own ability to retire.
Consider these five statistics:
46% of Americans have less than $10,000 saved for retirement. (Employment Benefit Research Institute)
40% of baby boomers now plan to work until they die. (AARP)
36% of Americans say they don’t contribute anything at all to their savings. [CNBC]
87% of adults say they are not confident about having money for a comfortable retirement. (Lifehappens.org)
Expected retirement age is up to 67 from age 63. (Zero Hedge)
So why, in the great prosperous country of America, are so many faced with doomed retirement dreams?
Those who took the surveys pointed to the rising cost of living and day-to-day expenses as the reason they are worried about or unable to save enough for retirement. And many also noted that rising healthcare and long-term care costs will have a major impact on their ability to afford a comfortable retirement.
Adding insult to injury is the fact that the once mighty dollar no longer goes as far as it once did, as a result of the loose monetary policies from the Federal Reserve.
“The biggest retirement mistake people make is they stick their money in a bank,” comments Aaron DeHoog, the financial publisher of Newsmax. “The reality is, inflation will destroy 50% of your savings every 22 years if you let it sit there. You have to put your money to work, safely.”
The problem is that current yields on safe investments, like CDs, bonds, and money markets, pay 85% less than what they did just six years ago.