(888) 292-1099 info@moneymastery.com

The Real Reason for the U.S. Retirement Crisis

Lack of adequate income at retirement is the next gigantic financial shoe to fall, and it is going to fall hard. 
Consider in 1981 nearly two out of three workers had a quality pension plan, not a 401(k), but a really strong plan where the employer agreed to pay 80 percent of the last 20 years’ salary each month for the life of the employee and their spouse.  This was not a “do it yourself” 401(k) like what is available today to build a so-called “retirement.”  This was not “everyone is on their own,” good luck.  This was not a “you have to be your own investment adviser” plan.  These pensions were cash solid and backed by life insurance companies with guarantees.
Retirement Ahead
Fast forward 30 years to present day. Not even one in five employees has a guaranteed pension plan.  What happened?  More employees have become more mobile, not only changing jobs often, but changing entire careers, some as many as six times in their working life!  This lack of long-term commitment and the high cost of providing traditional pensions did away with such retirement programs. Individuals no longer trade loyal, devoted service to one company for the company’s loyal investment in them in return. Mobility and career freedom have forced employees to be responsible for creating their own “pension” of sorts and statistics show they aren’t doing such a good job of it. According to U.S. census data, the average worker reaching age 65 has less than $60,000 in total assets and the Social Security Administration notes that 90 percent of all retired folks are totally dependent upon their monthly Social Security check, which doesn’t amount to much for most people.
The result of all this poor planning? People now have to work longer, even into their late 70’s, in order to support themselves. But working longer will not help with inflation, out-living savings, needing long-term care assistance, market risk, taxes, and a host of other problems that can affect the value of that income. And what happens if a person is not able-bodied enough to even attempt to work into their 70s?
To be successful in retirement now days requires the ability to create a predictable retirement that can overcome inflation, poor health, market risks, taxes, and other problems. This predictability does not come from 401(k)s or IRAs. To make it possible, you must first get your spending under control so debt can be paid off quickly. Once that is done, then you must next change the way you think about accumulating money for retirement. Instead of focusing on rate-of-return you should start locking down guaranteed income for life.  Without this guaranteed income, those who were ready to retire in 2008, when the big financial crisis hit, lost 40 percent of their 401(k) and retirement account income. If those folks had locked down a guaranteed income (which could include such things as permanent life insurance, real estate investment income, annuities, etc.) they would not have lost a penny. Now they must continue working and wait seven years to get back to where they were in 2008. Don’t be a victim of the next financial crisis. Begin exploring ways you can set up a predictable, guaranteed passive income that will pay you dividends for life, no matter how long you live and no matter what happens to the market. For more information, feel free to contact me: (888) 292-1099.

Get in touch with Money Mastery®

Money Mastery Logo
Connect with us.

Our support Hotline is available 24 hours a day: (888) 292-1099

Refund/Cancellation Policy:

All subscription purchases made can be cancelled anytime, directly within your subscription, by going to MY ACCOUNT and clicking on Do Not Renew. Subscription purchases are paid in advance. Purchases made for books and other items that are not monthly, or annual subscriptions, can be cancelled in writing within 30 days of purchase for a full refund.

Payment Methods