Kim Snider
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January 31, 2007

Forced Retirement

While 67% of workers say they expect to work for pay after age 65, a new survey indicates that, in reality, the opposite is happening. Sun Life Financial released a survey in which 22% of respondents said they had to retire earlier than they expected—an average of seven years earlier.

 

Layoffs and corporate downsizing were most often the reason for early retirement. Other reasons for leaving work included illness, injury and family obligations. These numbers jibe with similar numbers produced by the Employee Benefits Research Institute.

 

“It appears that unanticipated, forced retirement is occurring at an alarming rate, leaving the impacted retirees unprepared,” says Mary Fay, vice president and general manager of annuities at Sun Life Assurance Co. of Canada (U.S.)

 

[…]

 

Sixty-nine percent of respondents said their retirement plans have been impacted to a great extent or somewhat by leaving work early, forcing them to reduce expenses and change their lifestyles.

 

That is not surprising given only 70% of workers are saving for retirement and among those who are, 52% have savings and investments totaling less than $50,000!

 

I think the majority of Americans are delusional when it comes to the issue of saving and investing for retirement. Others think stories of the impending retirement income crisis are over-blown fear-mongering. What do you think and why? Leave your thoughts and comments below.

 

 

SOURCES:

 

1. "One In Five Americans Are Forced To Retire Early, Survey Finds"; Financial Advisor; Jan 2007; p 26.

http://www.fa-mag.com/issues.php?id_content=2&idIssue=117&show=fronline

 

2. Employee Benefits Research Institute and Matthew Greenwald & Associates, Inc. "Will More Of Us Be Working Forever?: The 2006 Retirement Confidence Survey" EBRI Issue Brief Number 292; April, 2006.

http://www.ebri.com/pdf/EBRI_IB_04-2006_1.pdf

 

Kim Snider, Kim Snider Financial Communications, Chronim Investments and/or Snider Advisors make no representation that the information and opinions expressed are accurate, complete or current. The opinions expressed should not be construed as financial, legal, tax, or other advice and are provided for informational purposes only. Call 866-952-0100 to request the Snider Investment Method™ Owner's Manual, which includes a description of the Snider Investment Method, investment objectives, risks, suitability and other information. Please read and consider carefully before investing. All investments are subject to risk including possible loss of principal.

 

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Kim Snider is an author, speaker and host of Financial Success Coaching, Saturdays at noon, on KRLD Newsradio 1080, Dallas - Fort Worth. This blog is primarily devoted to empowering individual investors with information to help them be good stewards of their money. Above all, it is about achieving true financial success. Kim's book, How To Be the Family CFO: Four Simple Steps to Put Your Financial House in Order is in bookstores now. Order yours from Amazon or other fine booksellers today.

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