Tuesday, July 5, 2011

Retirement as We Know it is Dead, June 24 2011

Peter Gorenstein
Daily Ticker
An increasing number of Americans are worried about their retirement. In fact, a recent Gallup poll finds retirement is the top financial worry in this country. The poll found that 58% of adults are “very/moderately worried” about maintaining their current lifestyle after they stop working. The number jumps to 77% among 30 to 49-year-olds.

There’s good reason to worry, says Michael Pento, senior economist at EuroPacific Capital. “Retirement is on life support, if not indeed dead as we know it today,” he tells Aaron Task in the accompanying interview.

“Where is the income going to come from to sustain a viable retirement?” Pento asks. The problem, as he sees it, is simple — income and asset values have plateaued over the last decade, while pension and entitlement programs are underfunded.

Pento recently penned a piece called “The Extinction of Retirement,” detailing the financial problems facing Americans on a fixed income.

Full article here

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