A recent headline in the Wall Street Journal declared, “A Generation of Americans Is Entering Old Age the Least Prepared in Decades.” The article starts out by stating, “Americans are reaching retirement age in worse financial shape than the prior generation, for the first time since Harry Truman was president.” It is a familiar story with some updated, and alarming, statistics.
Consider the following statements from the article:
Individual stories of financial insecurity often start with familiar hardships. At Rockbridge, we have clients affected by all of the common, but unfortunate, life events including job loss, personal illness, divorce, ailing parents or children, and student-loan debt for themselves or their kids.
One interesting change I noted – we now talk more often about “approaching retirement age,” rather than “approaching retirement.” Some people still choose to retire early, and others are forced to retire, but more people are choosing to continue working because they need the income or prefer the lifestyle.
At Rockbridge, we think people should make decisions that enhance their financial security whether they plan to retire or not. The trends noted above make financial security a more difficult goal to obtain. Planning early, and adjusting often, will allow people to be better prepared as they approach retirement age. If you have not reviewed your plan lately, give us a call.
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