Wichita Center for Rehabilitation and Nursing Shares Warning from World Economic Forum: Retirees On-Track to Outlive Their Savings by a Decade
June 28, 2019
Due to a strain in government and employer-sponsored retirement plans, retirees in six major economies in the world are being forecast to outlive their retirement savings by around a decade.
That is according to this report from the World Economic Forum on the savings of retirees, which Wichita Center for Rehabilitation and Nursing would like to share with you.
The study concludes that individual retirement programs are not growing fast enough to cover shortfalls in traditional retirement plans spearheaded by governments and corporations.
The six economies in the study are: the United States, United Kingdom, Canada, Japan, Australia, and the Netherlands.
Retirement Savings Projected to Last Less Than 10 Years in the U.S.
In the United States, retirement savings are projected to last 9.7 years, assuming a retirement age of 65. The average male lives to be 83, while the typical woman’s life expectancy is 85 in this country. That leaves an economic shortfall of 8-10 years, depending on the gender.
What Can Be Done to Reverse the Trend?
The study says that people are not thinking with a long-term mindset enough when managing retirement funds. The authors are urging people to understand that outliving their savings is a greater risk than any risk taken on in the short-term. They are calling on governments to reduce regulations on retirement savings to allow people to make higher-yield investments.
Without policy changes from governments or employers, the study says that people will face a fundamental shift in retirement age or plans.
“The size of the gap is such that it requires action,” report co-author Han Yik was quoted in Bloomberg. “Unless more is done, older people will either need to get by on less or postpone retirement. You either spend less or you make more.”
To learn more about Wichita Center for Rehabilitation and Nursing and all of the services they offer, visit https://centershealthcare.com/wichita_center/.
