By: Kelsey Hoffman
People have expectations for their lives and how they want to live them. By the time it is ready to retire, many people would rather continue their lives of luxury than sacrifice anything to cut costs. There is a new trend in the older generation where people, even though they are eligible for Social Security, continue to work longer so that when they do finally retire they don’t need to change their lifestyles. 95% of people say they would not be willing to spend less during retirement.
To go along with this, the younger generations are starting to save money sooner so that they will be able to retire more easily. They are also increasing their contributions to their retirement funds.
In this past year many people realized how important their retirement funds are. Before the recession, 43% of American households were “at risk” of not being able to maintain their current lifestyles during retirement. After the second quarter in 2009, this number increased to 51%. There were many factors that affected retirement funds but the real estate market decline, the drop in the stock market, and the increase in the costs of health care were three major aspects that influenced the funds.