Published November 14, 2013
For most people looking forward to retirement, it can seem the day might never come. Usually that’s just because the date seems so far away. But for some, the prospect of never retiring is more than an exaggeration – it’s a very real possibility.
Even after passing the “light at the end of the tunnel” age of 65, more Americans are finding themselves faced with serious financial struggles. While 60-65 has been the age for traditional retirement, older individuals these days are working years – sometimes decades – beyond. And a report by HSBC highlights that many people fear they’ll never have the opportunity to retire.
The problem? Sustainable financial security doesn’t always seem attainable, for reasons we’ll discuss below. Individuals are concerned that their foreseeable golden years will be filled with the game of ‘financial catch-up’ rather than filled with the expected financial security and peace of mind.
So is it true? Is retirement becoming an elusive dream?
In many ways, the worry is valid. With the decline of pensions and household savings rates, individuals are left to fend largely for themselves in retirement. Many aren’t finding it realistic to rely on Social Security and are accepting that a lengthened career might be the only way to gain realistic retirement returns. Though they hope to eventually reach the goal, financial hardship and health burdens can make it a challenging pursuit.
But that’s not to say there aren’t ways to address these issues. Here are some of the challenges faced by the current and upcoming generations – and some actions to take in order to combat them:
It’s not easy to save for retirement, but with these long-term trends in place and uncertainty surrounding social security, it’s better to be prepared than to end up reaching retirement age without enough money to survive on. Being proactive in your approach can help to ensure you enter into retirement with plenty of peace of mind.
This piece was contributed by Rod Ebrahimi, CEO of ReadyForZero and does not necessarily reflect the views or opinions of NerdWallet.
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