Retirement -- The New American Luxury

That luxury is Retirement. 

And only a select few will be able to enjoy the reality of a life-ending decade or two, spent relaxing and pursuing hobbies. Retirement is truly the last exclusive luxury, increasingly available to only a limited group of people - a true status symbol. 

The Impact of Demographics 

It's partly because of demographics. The huge baby boom generation is the first modern cohort to retire without pensions. The conversion from defined benefit plans to 40l(k) plans started in earnest in the early 1980s. Those retiring today have spent the past 30 years working and investing for their own retirement -- if they understood the importance of setting the money aside, and if they had the skills to make smart investment decisions

 Social Security benefits represent more than 90 percent of total income for 34.2 percent of Americans over age 65. And for about 64 percent of those over age 65, that monthly Social Security check -- roughly $2200 after deductions for Medicare -- represents at least 50 percent of their income.

 You owe it to yourself to take an independent look at where you are heading. This coming week is America Saves Week, so this is a perfect time to start. The place to start is a website created by the non-profit Employee Benefit Research Institute:www.ChoosetoSave.org. Once there, click on the green box for the "Ballpark Estimate" tool. (There is now an app that you can download to your iPad or smartphone.)

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