Retirement Challenges in the United States
Retirement is one of the major milestones that most people eagerly anticipate. Expectations of a seamless shift from employment to retirement are always present. The idea of retirement conjures up images of leisure, with no longer concerns about being late or even working without being appreciated. However, too many people discover that retirement is harder than anticipated once they have actually retired. Due to the present economic difficulties, retirees often end up not living out their dreams and even having trouble carrying out their plans. Significant changes have resulted from this realization, especially in the United States, where 22% of employees anticipate raising the retirement age. Likewise, 10% of workers do not intend to retire, a sentiment that elicits the fear of retirement realities (Jordan and Sullivan). As such, the retirement dream in the United States is decreasingly believed to be real.
The Retirement Reality: Financial Burdens and Lack of Purpose
According to Ann, the American retirement dream is defined by the achievement of relief, excitement, self-sustainability, and free time to spend with the family. On the contrary, the retirement reality deviates significantly from this expectation. Most individuals in retirement blame the weak economy as the primary reason why affording retirement is a huge burden. The lack of sufficient financial resources for sustaining a good life following retirement is what leads to a lack of a sense of purpose with feelings of being unneeded. As such, instead of spending time relaxing, retirees are faced with the reality that they must look for avenues to revitalize themselves and sustain their lives as before.
Unfulfilled Retirement Dreams: Working and Depending on Government Support
The retirement dream has not lived up to its expectations. In fact, Jordan and Sullivan mention that for retirees, the most prominent thought is the ability to travel, improve health and fitness, buy assets, and even support their families. However, a good number of retired individuals have come to realize that this is rarely the case. Approximately 20% of retirees plan to resume working to make the extra money to fulfill at least some of their needs. About a third of all retirees in America depend on a pension as the main income while a massive 70% rely on social security credit (Jordan and Sullivan). This dependence on government-released funds means that in reality, retirement does not usher in enjoyment and a stress-free life as expected. Instead, retirement means getting back to work in an effort to ensure self-sustenance.
The Inadequacy of Retirement Savings and Social Security
Retirement savings and social securities have been thought as some of the most appropriate approaches that would ensure the fulfillment of the retirement dream. However, Sightings states that currently, people are living longer and life has become expensive, yet the safety nets remain inadequate. Apparently, even those who save for retirement face complex calculations with challenges including guessing one's lifespan hence budgeting accordingly. Worse still, a health problem and other life challenges can consume the savings. Furthermore, social security benefits have lost their purchasing power by about a third since 2000, an occurrence that spells even more challenges for retirees who expect to depend on these funds as the main source of income (Jordan and Sullivan).
Retirement Challenges: Fragile Finances and Loss of Support Systems
In a nutshell, the American retirement dream has been reduced to a mere fantasy as retirees face challenges ranging from fragile finances, low-interest rates, miscalculations on money required, cost of living adjustment not matching the actual cost of living, and also unplanned emergencies that consume precious retirement savings. Additionally, health issues and loss of support systems including friends and family take a toll on the aging population. As such, even though the retirement reality in the USA deviates from the ideal expectation, an issue that worries most of the potential retirees today.
Works Cited
Ann, Ronnie. "Retirement Reality: So What Happened To The Dream?" 2017. Personal Finance Site. http://www.personal-finance-site.com/retirement-reality-what-happened-to-the-dream/. Accessed 11 December 2017.
Jordan, Mary and Kevin Sullivan. "The New Reality of Old Age in America." 30 September 2017. The Washington Post. https://www.washingtonpost.com/graphics/2017/national/seniors-financial-insecurity/?utm_term=.88e90a9fe12c. Accessed 11 December 2017.
Sightings, Tom. "The Retirement Reality Gap ." 15 April 2014. US News. https://money.usnews.com/money/blogs/on-retirement/2014/04/15/the-retirement-reality-gap. Accessed 11 December 2017.
