As fewer people receive pensions and are more reliant on their own retirement savings plans, this generation is assured a less secured retirement, according to U.S. News and World Report. Life expectancies are increasing as the confidence in Medicare may be dwindling.
A lot of individuals are deciding to work past the traditional retirement age, trying to ensure they receive the most from their traditional savings plans, the media outlet reports. Americans pay 12.4 percent of their income, up to $106,800, to Social Security. Most people cannot opt out of this plan and critics believe it is as much a retirement benefit as it is a welfare program, according to The Economist.
Private companies are also providing fewer contributions to their employer's benefits, causing a significant decrease in their annual savings plans. The recession caused many people to lessen their life insurance benefits and retirement contributions. Only 20 percent of Americans have access to guaranteed payouts for life through traditional pensions.
"For some time now, the trend has been that individuals are going to be responsible for more and more of the financing of retirement," Bob Carlson, editor of Retirement Watch and author of The New Rules of Retirement: Strategies for a Secure Future, told U.S. News and World Report.