NUGGETS OF ALPHA
Only 31% of middle-income Americans are saving, and 27% have no savings
3 people need to work to support every retired person
China faces a major demographic challenge as the workforce shrinks in the rapidly aging country
The U.S. unfunded liabilities are $211T today, with a 25% gain in 18 months
Per Statista’s intermediate scenario, social security will run out of funding by 2032
UK doctors are opting for early retirement in part to take advantage of inflation-protected pensions
The average currency has experienced a 14 dilution per year over the last 60 years
The InvestAnswers channel is focused on helping you obtain financial freedom - having the ability to retire well and take care of yourself and family. In the first part of this lesson, I will share alarming data to ensure everyone is not getting too complacent. In the second half of the lesson, I will outline the strategy that transformed my life and how I am committed to guiding others down the same path.
Two new surveys that came out this week reveal that the majority of Americans feel that they are lagging in their retirement savings:
56% of respondents feel they are behind on their retirement savings
37% believe they are "significantly behind"
Goldman Sachs spoke about a "financial vortex" where competing financial priorities and lack of planning hurt retirement goals. People need to prepare for what is happening today, and most are not ready for the future.
This issue is not just contained in the U.S., it is prevalent worldwide. According to the OECD, fewer working-age persons will be available to support an increasing number of older people due to the aging of the population. The dependence ratio of older people in the OECD will increase from 22% currently to 46% in 2050.
Addressing the issues of demography and older workers extends beyond just reforming pension systems. It is a matter of social equity that spans across workers, pensioners, and different generations. This issue is about to get a lot worse.
This means that only one-third of the population is adequately prepared between the ages of 55 and 64. But it gets worse...
Every generation has problems when it comes to Retirement obstacles:
Gen Z (often referred to as "GenZie" or "Zoomers" ): Born from the mid-1990s to the early 2010s. As of 2023, this would place individuals in this group roughly between the ages of 10 and 28.
Millennials (also known as Generation Y): Born from the early 1980s to the mid-1990s. In 2023, individuals in this group would be approximately between the ages of 28 and 41.
Gen X (Generation X): Born from the mid-1960s to the early 1980s. In 2023, this would place individuals in this group roughly between the ages of 41 and 58.
Boomers (Baby Boomers): Born from the mid-1940s to the mid-1960s. In 2023, individuals in this group would be approximately between the ages of 58 and 78.
As far as I am concerned, you should be saving at least
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