Now's The Time To Plan Retirement

Economic conditions over the past several years have changed realities for all of us, but two groups at very different ends of the spectrum have been hit with very similar challenges - college graduates and retirees. Both groups are asking, "Where did all the income go?" and how one group answers the question could be the catalyst to kickstart a new economic cycle.

Every day, we talk with people planning their retirement and many are just now starting to get serious about the savings required to live the lifestyle in retirement they see for themselves. Unfortunately, in many cases, their plans rely on what is clearly becoming an unrealistic expectation of maintaining (or even increasing) income through a set period of time.

Retirement has long been viewed as something an individual chooses to do on his or her own timing. However, given the circumstances we face today, retirement is now often something that is done to an individual and not necessarily at the timing of his or her choosing. As a result, many individuals (up to 66 percent by many surveys) are unprepared for retirement and have little control of the time in which they can make up that lack of preparedness.

At the other end of the spectrum, college students are realizing their ability to fulfill their plans is equally at risk. Many took on student loan debt with the expectation of finding jobs that would pay off these burdens, but that's not happening either.

Retirees and college grads meet as they begin to compete for the same jobs. Retirees need to find something, anything, to help close their gap in income and retirement planning. College grads need to find something, anything, to help pay off those loans. So for the first time in history, we have a multi-generational pool of new hires, which has dramatically increased the supply of labor for a limited number of available jobs.

As long as these two groups are competing for the same jobs, restarting our economic engine is going to be a challenge. This is especially true if a recent survey by Wells Fargo comes to fruition: One in four middle-class Americans (defined as earning between $25,000 and $99,000) say they'll need to work to at least age 80 to close their income gap.

A key to separating these two groups and allowing retirees to really retire is understanding that planning for retirement is a full-time job that starts the day you get that first full-time job. Waiting for the "right time" just isn't an option anymore.

We believe that by taking the personal responsibility of creating a financial plan for your retirement early in your career, you're not only helping yourself, but you're helping future generations get their start in the world.

Source: http://news.cincinnati.com/article/20111118/BIZ01/111180345/Now-s-time-plan-retirement?odyssey=tab|topnews|text|Business