Our waning hope
According to an April 2009 Gallup poll, for the first time this decade, a majority of non-retired Americans, 52%, doubt they will have enough money to live comfortably once they stop working. We may be able to solve our money worries today with a quick payday loan or a debt consolidation. But what about tomorrow?
Research shows morale is low
For 19 years, the Employee Benefit Research Institute has been conducting a survey of Americans’ plans for retirement. This year’s poll, conducted in January, shows that workers’ and retirees’ confidence about retirement security is at a record low. Just 13% of those surveyed are very confident about having enough money to retire comfortably. That’s down from 18% in 2008 and the record high of 27% in 2007.
Gee, that sure is surprising (if you’re a troglodyte)
You’d have to be pretty reclusive to be surprised by these results. Do we really need a formal 
survey to find out how much confidence Americans lack in the economy? Can’t we get that just by eavesdropping on a random conversation in a local bar or a grocery store checkout line? The reasons for our lack of confidence are painfully obvious.
We’ve been warned
For years we’ve been warned that we will not be able to retire on Social Security. We’ve been warned that the system will run out of money. Our only remaining confidence is that those hefty deductions will continue to be made from our paychecks. We’ve known for a long time now that our retirement income will need to come from our own resources.
And our resources lie in tatters
The value of our resources, to the extent that they have been invested in stocks or real estate, has plummeted. This corresponds to some other insightful findings of the studies: Our reliance on 401(k) and other tax-exempt plans as major retirement income sources has dropped significantly. Our reliance on work-sponsored pension plans is at an all-time low. Our reliance on other income sources has not increased. And so, there you have it: the foundations for a formal survey pronouncement that we are increasingly concerned that we will never have enough money to stop working.
But at least we’re redefining retirement
A ray of hope: language is not static. Retirement can be redefined as part-time work. And indeed, we are beginning to express an increased reliance on part-time work to fund our retirements. In 2001 only 10% of persons surveyed said part-time work would be a major source of retirement income. Today that number is 22%.
Still we cling to the stock market – or do we?
When asked to choose, people specified stocks as the most hopeful income stream for their retirement years. This suggests that confidence in retirement may increase as the stock market recovers. On the other hand, it may be that we will never again believe that our personal savings plans will grow inevitably and steadily. If we’ve learned something, it may be that we must continue to worry despite stock market trends.
What Should You Do Now?
Among those surveyed who have lost confidence in their ability to retire comfortably, 81% have cut spending, 38% are working more hours or have taken on a second job, and 25% are saving more. These are good ideas in the larger sense. But between now and retirement, why worry about the small stuff? Get it off your mind with a quick cash advance in Ohio loan. And then get back to work.
