The way people prepared for their retirement has changed dramatically over the last few decades. It used to be that most people planned and saved for their retirement the same way and those plans were fairly predictable. However, nothing could be further from today's reality where planning and saving for retirement is a much, much different scenario.
Retirement in the 1980s
Decades ago most retirement plans consisted of a combination of social security and a company pension plan. Then once you actually retired, you just relaxed doing the things you loved until you passed on which was usually around your early to mid 70's.
Retirement in the 21st Century
Retirement preparation and planning has changed over the years because the way people work …show more content…
This is a far cry from the low to mid 70's of the past which means people will need to save more money to retire on because they will be living longer.
Pension Plans Are Almost Non-Existent
It used to be that people would stay at their jobs for a lifetime and their employers would provide them with a pension plan. Therefore, between social security and a company pension they would have enough money to live comfortably until they passed on. However, most employers no longer provide pension plans. And, unfortunately, the average social security check today is only about $1348 which isn't enough money for most people to live on. That means today's retiree's have to find other ways to supplement their income.
Most People Have More Debt Than Their Parents Did at Retirement
Between the rising housing costs, insurance, food, etc., and the fact that it's much easier to borrow and carry a line of credit than it was decades ago, most people are retiring with much more debt than they once did. For example, people used to buy a house with a 30 year mortgage which was paid off by the time they reached retirement. However, this is no longer the case for most people so they are retiring and having to include a mortgage payment as part of their monthly expenses which takes a huge chunk out of their monthly
Retirement in the 1980s
Decades ago most retirement plans consisted of a combination of social security and a company pension plan. Then once you actually retired, you just relaxed doing the things you loved until you passed on which was usually around your early to mid 70's.
Retirement in the 21st Century
Retirement preparation and planning has changed over the years because the way people work …show more content…
This is a far cry from the low to mid 70's of the past which means people will need to save more money to retire on because they will be living longer.
Pension Plans Are Almost Non-Existent
It used to be that people would stay at their jobs for a lifetime and their employers would provide them with a pension plan. Therefore, between social security and a company pension they would have enough money to live comfortably until they passed on. However, most employers no longer provide pension plans. And, unfortunately, the average social security check today is only about $1348 which isn't enough money for most people to live on. That means today's retiree's have to find other ways to supplement their income.
Most People Have More Debt Than Their Parents Did at Retirement
Between the rising housing costs, insurance, food, etc., and the fact that it's much easier to borrow and carry a line of credit than it was decades ago, most people are retiring with much more debt than they once did. For example, people used to buy a house with a 30 year mortgage which was paid off by the time they reached retirement. However, this is no longer the case for most people so they are retiring and having to include a mortgage payment as part of their monthly expenses which takes a huge chunk out of their monthly