The new retirement model revolves around dying broke and realizing that the 401k model of investing is a sham for most Americans.

The new retirement model means working until you die. Most Americans are broke and living paycheck to paycheck. Yet the stock market is near a modern day peak. What is going on? Wasn’t the 401k experiment that launched in the early 1980s to replace pensions supposed to be a panacea in terms of building out nest eggs for the masses in their golden years? That was the idea but unfortunately inflation has eaten away at the standard of living and many Americans simply did not have enough to save when it came to retirement. We know the drill – sock away X percent a month and after 30 or 40 years you will have seven figures. Well here we are, nearly 40 years from that experiment and most Americans have little to nothing in their retirement accounts and the pension (a forced 401k in a way) is virtually extinct. So is dying broke the new retirement model?
Americans have very little saved
This might come as a surprise but most Americans have very little saved when it comes to retirement (assuming they even have retirement savings). The numbers don’t even look that great after a massive bull market.

This post was published at MyBudget360 on June 30, 2017.