Friday, January 18, 2013

Weird’s Deep Thoughts (Friday Noon Reality Bites Edition) Are Young Workers On Track For Retirement--Or Smoking Something?




Nearly every week some think tank, lobbying group or financial service company reports what sad shape Americans are in, or think they are in, when it comes to retirement. This week, for example, AARP, the lobby for those 50 and up, released a collection of research reports showing that if current trends continue, the living standards of middle class retirees are in for a big decline. (The papers were produced in cooperation with reputable academics, but are being used by AARP as part of its campaign against any Social Security cuts, including a change in the way the annual cost of living benefits boost is calculated.)

 Meanwhile, financial advice firm HelloWallet was generating  buzz with a new report detailing how a quarter of folks have been “breaching” their retirement accounts and  incurring tax penalties and fees that could have been avoided if they’d built up emergency funds first, instead of stuffing all their savings into 401(k)s.

So this happy news subject line on an emailed pitch from Ogilvy Public Relations yesterday caught my eye:  “Younger People Think They’re On Track For Retirement.”  Turns out that in a survey of defined contribution plan participants conducted last October by State Street Global Advisors and the Boston Research Group, 82% of those under 25 said they were on track to have enough saved to meet their retirement goals. That compares with the 54% of those aged 35 to 44 and 63% of those 55 and older who described themselves as on track.  The youngest workers were not only confident, but in some cases downright cocky….


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