Is retirement for most out of reach?

Retirement is becoming more and more of a pipe dream for workers all over the world. A troubled global economy paired with longer life expectancies is forcing many to continue to work far past the age they imagined because of a lack of sufficient savings. Governments have resorted to increasing the age at that citizens can receive money from social security plans in an effort to minimize the number of people in the system

Governments are struggling to address this issue, often resorting to increasing the retirement age or reducing benefits in order to keep social security plans financially viable. Still, retirement is becoming increasingly difficult for many people around the world, particularly as economic pressures and longer lifespans make it harder to save enough money to live comfortably during retirement. As a result, many individuals are forced to continue working long past the age at which they had hoped to retire, sometimes well into their 70s or beyond.

Unfortunately, these measures currently being taken by Governments can make it even more difficult for people to retire, particularly those who work physically demanding jobs or have health issues that make it hard to continue working as they age. Since 2001 the average age of retirement in the USA has gone from 61 to 65 in 2022. In Canada, we have had the same age of retirement 64.5 since 2001.

For what it is worth here are several creative solutions that governments, employers, and individuals can consider to address the lack of retirement security:

Government solutions:

• Introduce or expand public pension programs that provide retirement income to those who may not have access to employer-sponsored retirement plans.
• Create tax incentives or matching contributions for individuals who contribute to retirement savings plans.
• Provide financial education programs to help individuals better understand retirement planning and saving.

Employer solutions:

• Offer retirement benefits, such as 401(k) plans or pension plans, to all employees regardless of their position or length of service.
• Provide financial education and counselling to employees to help them make informed retirement planning decisions.
• Create phased retirement programs that allow older workers to gradually reduce their hours or responsibilities over time.

Individual solutions:

• Start saving for retirement as early as possible, even if it means starting small.
• Consider working longer or part-time during retirement to supplement retirement income.
• Explore options for downsizing or relocating to a more affordable area to reduce expenses during retirement.

Overall, it will require a combination of government, employer, and individual efforts to address the retirement security crisis and ensure that everyone has the opportunity to retire with financial security and dignity.