Author Topic: Many Americans fear going broke in retirement  (Read 2957 times)

water1974

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Many Americans fear going broke in retirement
« on: May 26, 2014, 08:22:15 PM »
http://www.usatoday.com/story/money/personalfinance/2014/05/25/retirement-affluent-americans-going-broke/9383019/

'Despite their fear of going broke, many don't want to cut back on discretionary expenses to save for the future: 33% aren't willing to cut back on entertainment to save more, 30% won't reduce eating out and 28% aren't willing to forego vacations, the survey found.

More respondents (63%) say having money to live "in the here and now" is a priority than those who said saving for the future (48%) is a priority. (Respondents could select more than one category as priorities.)'

dragoncar

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Re: Many Americans fear going broke in retirement
« Reply #1 on: May 26, 2014, 11:22:00 PM »
I really need to start paying attention to Australia (where they are, how they got there, where they are going) as a proxy for potential future American economy

deborah

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Re: Many Americans fear going broke in retirement
« Reply #2 on: May 26, 2014, 11:28:42 PM »
I really need to start paying attention to Australia (where they are, how they got there, where they are going) as a proxy for potential future American economy
Why Australia?

dragoncar

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Re: Many Americans fear going broke in retirement
« Reply #3 on: May 27, 2014, 12:01:23 AM »
I really need to start paying attention to Australia (where they are, how they got there, where they are going) as a proxy for potential future American economy
Why Australia?

LOL, because I posted in the wrong thread.

(meant to be here but it's probably too late now:

http://forum.mrmoneymustache.com/off-topic/the-new-wealthy-poor/?topicseen)
« Last Edit: May 27, 2014, 12:03:01 AM by dragoncar »

frugaliknowit

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Re: Many Americans fear going broke in retirement
« Reply #4 on: May 28, 2014, 01:55:17 PM »
Amazing how one fears going broke, but does not want to curtail eating out!!

MgoSam

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Re: Many Americans fear going broke in retirement
« Reply #5 on: May 28, 2014, 02:04:15 PM »
The fear of going broke in retirement is something that I know will plague me. This reasoning though is somewhat legit for me, I'm not someone that splurges and my living expenses are reasonable (and lower than most would expect). The reason I am concerned about going broke is due to an unforseen expense or a huge drop in the stock market, both of which are risks that I will work to mitigation well before I would plan to retire.

That said, I hate that people fear going broke yet won't do something like lower expenses, in order to avoid going broke. This reminds me of a conversation in LOTR: Return of the King

Irolas: It is as the Lord Denethor predicted. Long has he foreseen this doom.
Gandalf: Foreseen and done nothing!

golden1

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Re: Many Americans fear going broke in retirement
« Reply #6 on: May 28, 2014, 02:06:25 PM »
Not really surprising.  Most people are short term thinkers and the idea of thinking about retirement seems very abstract.