<![CDATA[Not having enough money for retirement is the number one financial worry of Americans. This is according to Gallup’s annual Personal Finance poll, updated in April 2007, in which Americans were asked to rate the amount of concern they have about each of several financial problems. The baby boomer generation is retiring and facing up to the fact that not only have they not saved enough, they are living longer, getting less support from the state than ever and inflation is eating into their savings. Of the eight specific items rated in this year’s poll, “not having enough money for retirement” generates the most concern, writes Lydia Saad of Gallup News Service. “Even a majority of Americans in upper-income households say they are “very” or “moderately” worried about their retirement income.” These remarks by President Bush at the 2002 National Summit on Retirement Savings
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Washington, D.C., are very interesting. “Just over a hundred years ago, at the turn of the last century, the average life expectancy in America was only 47 years. Today, that number has increased by three full decades. This amazing advance in the health of Americans is also profoundly changing our society. Americans who retire today may have decades of healthy life before them. This is time to volunteer, making seniors one of the greatest resources of compassion in America. This is time for family to pass on values to grandchildren and to strengthen the bonds between grandparents and family members. And, increasingly, retirement is a time of new beginnings: a time to travel and explore; a time to take up new hobbies; and a time to take up new careers. Some 80 percent of baby boomers — I happen to be one — say they plan to work at least part-time in retirement. And smart employers will be wise to use their experience, and their competence. The choices seniors make in retirement should not be limited by arbitrary dates, or obsolete stereotypes. Increasingly, the choices of seniors will only be limited by two things: the state of their health, and the state of their savings. Because the nature of retirement is changing, the needs of retirement are changing as well. Older Americans now require a retirement nest egg large enough for decades of enjoyment and ambition. As medicine increases the length of life, adequate savings must increase the options we have on longer lives. Saving is never easy; it’s hard for some to do. But it’s always worthwhile. Particularly when you think about the power of compounding interest. The power of compound interest is one of the great advantages of American citizens. And they must learn to use it. If a worker starts saving just $20 a week at age 22, and earns a 5.5 percent real interest rate on the investment, that adds up to a nest egg of nearly $180,000 by age 65. This summit was created by Congress to educate workers and citizens about the power and rewards of saving, and I want to thank you for participating. You’ve accomplished a great deal, but there’s much more to do. Americans are saving too little — often, dangerously too little. The average 50-year-old in America has less than $40,000 in personal financial wealth. The average American retires with only enough savings to provide 60 percent of his former annual income. This problem is especially acute for women and minorities.” Retirement is the time to enjoy the rest of your life. I believe you can only do this if your income is consistent and reliable, grows to meet cost of living increases and, is not diminished by taxation losses. I believe you will also want to protect your capital so it is available for your own use or the future use of your beneficiaries. Looking forward to a more relaxed lifestyle…never having to get up for work again…having the time to do the things you’ve put off for years…travel…seeing more of friends and family