Sunday, August 3, 2008

Retirement Looking Bleak for Many Americans

"Australia provides the model for retirement planning," says Jane White of Retirement Solutions. "With a forced contribution rate of 9% of salary from all employers, along with much higher limits for employee contributions than Americans, Australians, on average, will retire with assets of more than $500,000. The Aussies are putting our retirement system to shame."

Indeed retirement is looking bleak for many Americans. Elderhostel, a nonprofit that runs educational travel programs for retirees, expects enrollment to drop 7 percent this year, said President Jim Moses. This is just a one sign of many that Americans are facing financial problems in retirement.

Another sign that Americans may have a bleak retirement is that the baby-boomer generation about to retire is in no rush to pay off their mortgages according to the third annual Affluent Boomers at 60 survey from Bell Investment Advisors.

The prior generation of retirees had a major goal prior to retirement: "Burn the mortgage!"

Not so with the baby-boomer generation. More than 55 percent of boomers surveyed who currently hold mortgages do not plan to pay their mortgages off until at least their 70s, and likely never.

Of the 500 boomers surveyed approximately two-thirds currently have mortgages on their residences. The remaining third either rent or do not have a mortgage.

Download the Free E-book The 237 Best Things Ever Said about Retirement by Ernie Zelinski at:

Creative Free E-books at the Real Success Resource Center

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