Most People Will Work Until the Day They Die

Most people will work until the day they die.  The cost of living is prohibitive, and costs continue to rise beyond expectation or reason.  Virtually everything costs more than it should and it seems that every retailer takes any opportunity to bilk the public of every last drop of blood they can squeeze….Look at airline fares that change by the day by more than 30-50% even when fuel is at bargain basement prices.   Go to an isolated resort and deal with the exorbitant prices that are charged for nothing.  I used to claim this of Europe; now that the dollar has strengthened, it seems that US prices are the shocker!

Getting to the point, the truth is that the majority of American have not prepared for retirement, spending every penny on yesterday and today and tomorrow hoping that a miracle will provide for next week and next month.  I refer you to one of many websites detailing the challenges facing American’s in retirement: http://www.fool.com/retirement/general/2012/10/15/17-frightening-facts-about-retirement-savings-in-.aspx. 

But it feels like things are getting worse, not better.  We are not alleged to be in a recession, but it seems like there is little hope for any upward mobility for the masses, dealing with the reality of rising prices that continue to do so unscrupulously, while wishing to squirrel away a few dollars for those later years of life in retirement. 

Indeed, a growing number of Americans will be in debt for the rest of their lives, not only with mortgage payments, car loans, credit card debt, alimony and child support, but also many have amassed enormous debt from extraordinary loans for college, graduate school and/or professional school.  Accumulated debt of up to ¼ million dollars is now commonplace per individual; the total debt has now surpassed one trillion dollars nationally!  To make matters worse, many students continue accumulating student debt just to postpone payback (the clock begins to tick when you complete your education).  In addition to student loans, Americans are infamous for compulsive spending on frivolous items and luxuries that ironically backfire in later life when they can no longer be afforded.  Pay now or pay later!

American Household Debt: Current as of August 2015

U.S. household consumer debt profile:

• Average credit card debt: $15,706
• Average mortgage debt: $156,333
• Average student loan debt: $32,953

In total, American consumers owe:

• $11.85 trillion in debt
• An increase of 1.7% from last year
• $890.9 billion in credit card debt
• $8.17 trillion in mortgages
• $1.19 trillion in student loans
• An increase of 7.1% from last year

https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

Increasingly, its not a matter of if or when to retire, but rather how to earn enough to get by in your later moments of life, assuming that accumulated debt will continue to drain whatever income you have earned or stored away for emergencies and to fulfill your retirement fantasy.