Funding Retirement (1)

"Coping with an aging population will be the great global challenge for societies and families in the 21st century", says Peter Peterson, chairman of a New York Investment Banking firm. Peterson says to plan ahead for a longer work life. The best way to plan for this crisis is to recognize that more of your retirement financial burden will fall on you.

The savings rate among middle aged Americans is unbelievably low. Half have net financial assets of less than $10,000 despite warnings about how much it will cost to retire. More countries are requiring people to save for retirement. Decide when you plan to retire and whether you plan to work. Determine the minimum annual income that is acceptable as a standard of living in retirement and how much more you must save to achieve it. Make saving your top priority instead of your last priority.

Source: Peterson, P. (1999, July 15). Winning in tricky times. Bottom Line Personal, p.7.