Retirement Insecurity is REAL, Here’s Why

23 Feb Retirement Insecurity is REAL, Here’s Why

Retirement Insecurity is very real for most Americans. Retirement, after a lifetime of working hard at your job, you finally stop working, relax and enjoy your Golden Years.  That’s how it used to be back in the olden days.  Employers used to offer pensions to reward an employee’s hard work and loyalty with a retirement plan that allowed you to retire comfortably and not have to worry about money during those Golden Years.  Back then, most employees wouldn’t ever consider working for a company that didn’t offer a pension – companies offered a pension to attract the best employees, so finding an employer that didn’t offer a pension was few and far between.  I remember my Grandfather who was a High School dropout but ended up working for General Electric for 30 years.  His G.E. pension was so good; he was able to buy a new Cadillac every 3 years!

Pensions Disappeared – Now it’s up to YOU to Fund Your Retirement

Fast Forward to 2021, now only 14% of companies offer a true employer-sponsored pension. Companies found that funding pension funds was costly and eating into their bottom lines and don’t say this out loud – but their CEO’s paychecks!  So out with pension plans and in 1978, the 401K was born.  Employees are now responsible to fund their own retirement plans.  Most companies do contribute matching funds, but nothing like they used to contribute to a true pension plan.

How your employee mindset deepens your Retirement Insecurity

So here you are, deep in the Employee Mindset that your parents instilled into you all your life.  Go to college, get a good job, work hard, and you’ll be able to get your piece of the American Dream.  Then you can retire, relax,  and not have to worry about money…right?  Wrong!  As I’ve shown in previous blogs, the old American Dream died in the late 1950’s.  You work hard, spend far too much time at work and now besides all of the monthly expenses you have to pay for, you now need to fund your own retirement!

How do I Save for Retirement if I can barely Pay my Bills?

It goes without saying that if you’re struggling to pay your monthly expenses how the heck are you going to set aside any monies into your 401K?  Along with the monthly expenses, if you’re like me, you have debt to pay off as well, student loans, mortgage, car loans and don’t forget college for the kids.  The last thing you want is to saddle your children with the kind of student loan debt that we’re all dealing with.

Sorry to Say This Out Loud – but Don’t Count on Social Security

If you can’t fund your 401K can you count on Social Security for at least some retirement money?  I am usually an optimist in my personal life, but with this question I am highly pessimistic.  I think that if Social Security Benefits are still around in 20-30 years the money it provides will be less than minimal.  Meaning, even though you are “officially” retired, you will need to keep working.  So much for those Golden Years!  Will you need to work until you are 80?  If you can’t work to pay your bills can you move in with your children – do you want to move in with your children?

Enjoy your Retirement with an Entrepreneur Mindset

I’m sorry that I’m painting a pretty grim picture here – but it’s a very real picture for many, many people.  If you are over 40 and either haven’t saved for retirement, or you are behind in your 401K contributions, you are gambling with your retirement.  But there is hope and a path for you to fund a comfortable and carefree retirement – the Entrepreneur Mindset. 

Be Your Own Boss and Work Your Passion

Allow yourself to break the chains of the Employee Mindset and allow your Entrepreneurial Spirit to re-emerge.  Stop being an “Employee’ by trading time for money.  Stop worrying about job security.  Stop waiting and hoping for a raise.  Be your own boss, start a business that is your passion and give your time back to you, and your business.  When you live the Entrepreneur Mindset, you can have a secure retirement, and the only limits to wealth are any limits you put on yourself.  Build your business and follow us The Biz Wizards so we can provide guidance and tools to help you succeed beyond your wildest dreams!

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