Worries About Retirement Income - Brief Article

USA Today (Society for the Advancement of Education), Nov, 1999

The vast majority of working people aren't satisfied with the amount of money they expect to have for retirement, according to research by Sharon DeVaney, assistant professor of consumer sciences and retailing, Purdue University, West Lafayette, Ind. In a study of self-employed and salaried workers, she found that just 15% in each group were satisfied with their expected pension and Social Security incomes. "Most people these days plan to work some after retirement. However, if poor health inhibits their ability to work later on, then their financial well-being may be in jeopardy," she cautions. (A poll from the American Association of Retired Persons shows that eight out of 10 baby boomers plan to keep working at least part time after retirement.)

Retirement income traditionally has been viewed as a three-legged stool consisting of Social Security, employer-provided pensions, and private savings. "Many people believe that the three legs of the stool have weakened and that a fourth leg--earnings after retirement--will become increasingly necessary," DeVaney indicates.

Her study indicated that older workers were happier than younger ones. "As people age, they are more likely to save for retirement, which increases their satisfaction."