According to some recent research, consumers and experts share some dim views on retirement security.
John West of Research affiliates issued a report last week ominously titled “Hope Is Not A Strategy”. In it he steps through exactly why the 8% return assumptions commonly used by pension funds and 401(k) calculators is unduly rosy, and the important difference between of relying upon high returns versus aspiring to them.
Allianz Life Insurance Company of North America issued a white paper “Reclaiming The Future” that indicates Americans have quite a bit of anxiety about retirement. Among their key findings:
- 92% of those surveyed believe America is facing a retirement crisis
- 47% fear not being able to cover basic living expenses in retirement
- 61% of those surveyed said they were more afraid of outliving their assets than they were afraid of death.
That is not to say there was no good news to report. According to USWeekly Magazine’s web site, Taylor Swift and Jake Gyllenhaal enjoyed themselves tremendously on a “Flirty Ice Cream Date.” If they take it slow, those two kids just might make it!