Wells Fargo bank says 80 is the new 65. In other words, whereas people used to think 65 would be their retirement age, now the expected retirement age is 80. (Bloomberg, Nov 15, 2011)
Makes sense. Most people won’t be able to work once they reach 80. And even if they could or wanted to, who’s likely to hire them?
Why are people NOT retiring at 65?
According to Wells Fargo the average Baby Boomer has only about $29,000 saved toward retirement. A recent Wells Fargo survey said that 74% expected to work in retirement: 39% because they need to, 35% because they want to, 25% because they don’t have sufficient savings.
A spokesperson for Wells Fargo said most respondents said there were No Good Alternatives to the stock market for them to save their money. 45% said they’d invest their money into a CD. One year CDs yield .35% and five-year CDs yield 1.19% according to Bankrate.com. Choosing CDs as an option confirms that fiscal literacy in our country isn’t what it needs to be. An investment that doesn’t even keep pace with inflation can hardly be considered an investment.
Respondents complained about the limited options where they could save their money with the degree of safety and performance they desire.
If you know anyone who thinks that way, share with them that they need to look outside of banks or Wall Street firms, away from where mainstream media and advertising agencies direct their attention. There’s a reason the marketing machine of these institutions feeds innocent, trusting folk the message it does. Because they can profit from the incredibly low level of fiscal illiteracy and naivety that permeates our society.
There are safe, steady places to grow your money today, even in these volatile economic times, without the risks of the stock market and with better returns than bank CDs.
Start with: “The Smartest Savings Plan for Our Times.” This plan should easily be the essential cornerstone in any financial foundation. It provides protection against market risk. It delivers reasonable rates of return. It allows for tax deferred growth of the money and tax free access to the money. It is far safer than most allocation models in 401(k) plans. It’s more flexible and allows you more control of your money than those plans as well.
Unfortunately for those respondents to Wells Fargo’s survey, banks don’t offer “The Smartest Savings Plan for Our Times.” You can learn more about it HERE.
