Monday
Jul142008
The middle class can expect big retirement troubles
Monday, July 14, 2008 at 3:00PM
A study from Ernst and Young on the likelihood of new retirees outliving their financial aspects was discussed in a conference call this afternoon. Joe Reali, chairman of Americans for Secure Retirement, claimed the study found that the majority of middle class retirees will outlive their retirement benefits.
According to Tom Neubig, who represented Ernst and Young, 6 of ten new retirees will not be able to maintain their current standard of living when drawing from available retirement resources, and many will be forced to cut their spending during retirement by about one third. He went on to say that those retiring with a guaranteed source of income like a structured payment package will fare much better than others.
Larry Mitchell, director of legislative affairs for the American Corn Growers Association, added that many who work in farming are forced to take on additional jobs to earn income due to financial worries. Most of these jobs offer little or no retirement benefits. As such, farm workers across the nation are having an increasingly difficult time earning adequate retirement benefits, and with the release of this new study the situation appears only to be getting worse.
According to Tom Neubig, who represented Ernst and Young, 6 of ten new retirees will not be able to maintain their current standard of living when drawing from available retirement resources, and many will be forced to cut their spending during retirement by about one third. He went on to say that those retiring with a guaranteed source of income like a structured payment package will fare much better than others.
Larry Mitchell, director of legislative affairs for the American Corn Growers Association, added that many who work in farming are forced to take on additional jobs to earn income due to financial worries. Most of these jobs offer little or no retirement benefits. As such, farm workers across the nation are having an increasingly difficult time earning adequate retirement benefits, and with the release of this new study the situation appears only to be getting worse.
Reader Comments (1)
The question is who is middle class not whether or not they will have enough money. This is the quickest disintegrating group as current or soon to be retirees may soon realize and when they do, they will have to readjust not only their thinking about retirement but who they think they are. George Carlin once said that the poor are only there to remind us why we work. Now it will be the retirees who remind us why we save.