Also in this playlist...
This transcript is automatically generated
-- stunning new report.
Shedding light on the growing retirement crisis in America get this it's a survey that was just released by the Employee Benefit Research Institute.
And they've concluded that some 57%.
Of those surveyed have less than 25000.
Dollars in savings -- a poster and a retired of less than 25 grand in the bank.
While a record high of 28%.
Have no confidence.
They will be able to retire at all.
How do we get here.
Melissa Francis is host of -- money with Melissa Francis the Fox Business Network.
Chris plant is radio host of the Chris -- -- and Leslie Marshall is a syndicated radio talk show host and Fox News contributor.
-- you -- you think about this in and how how scary that must be.
For the would be retirees to look at the bank account see less than 25000 in Iraq had about people who work at the end of life.
You know who but they have.
According to the actuaries probably 25.
Or more years to live.
What Melissa what this was -- -- -- a thousand dollars -- -- -- what are -- supposed to do.
Now I mean here's -- really scary set of statistics do you adds that at 28% of Americans have dipped into their 401K during this past recession.
Because they didn't have enough money to get by you add -- about how much home equity value has been lost during this downturn I mean.
For our parents that was one big way that they always planned on retiring you saved up for down payment you bought a house you -- did -- raise your family there.
And then when you wanted to retire you sold it -- you used all that equity that had grown over that time.
To retire on almost all of those things have disappeared at the same time.
Pensions have gone away we don't really live -- a pension system any longer so we have a real crisis coming and we all know you can't depend on Social Security.
-- and you look at you look at the numbers and you think.
All right so if these people don't have any you know significant money in the bank now.
Where -- they gonna get it in this job market Chris having you know that.
It we've seen some rebounding but we still have tens of millions of Americans who are unemployed or underemployed.
And he's not exactly like the job spigot has been turned back on full force.
Yeah I mean how many starter jobs are there on golf courses across America looks like we're all gonna have to work forever at this point.
Social Security we know -- a ruse and and it honestly there -- a couple of that there a couple of things here that are.
Or would be good things are longevity is -- living longer.
We're we're living longer and interest rates are low those those on the face of it sound like a couple of pretty good things but when you combine them.
And a period of low economic growth and very low interest rates.
These these retirement funds are predicated on assumptions of healthy growth in the economy and interest rates which -- -- money in a safe way into these accounts and when you do away with.
The interest income and you do away with the economic growth.
You see a deflation of these retirement funds and they're not worth what you projected they would be worth so -- run out of money ten years have more quickly than -- Thought you -- -- and you're live in twenty years longer than you thought it would mean to study they talk to the actuaries and they said.
A man who reaches age 65 this year -- is now expected to live an additional twenty point five years.
And women who turns 65 is here now expected to live an additional 22 point seven years so you know pretty good numbers in terms of your last.
And Leslie but they -- they weren't really planning on living that long and Andorra where you're the employers and Nora has the government -- planning on seeing people of this law.
No that's true and by the way when I did some research on this the longer we go into the future.
The longer people are going to live that's -- the scientists are saying -- geneticists are saying I wanna know Megan why women are great to be living as long as many used to be the other way around.
What we're doing this and now look at our daughter you know that -- taking care the field.
We're one -- how -- stress of you know this job.
OK so now I'm gonna present something -- -- Now as much as I know my my buddy Chris over there -- which would like to blame.
Our president a Democrat -- -- for this we really can't we we have to blame ourselves I'm guilty of this too which is we love to live now.
We live in the now.
In many people don't plan for the future and Melissa.
I'm I'm with all of those seniors on the hope in my house will be my retirement.
And the market will turn around but but it might but it might not have those people much closer to retirement and the fact that we have 101000 more people -- -- -- -- their golden years because of the baby boomers.
This was inevitable but but all of you let's think about this and other societies how -- they tackle list and not just with the socialized government system.
With extended families for taking care I want and -- so -- and we don't -- -- -- -- have a little less is point out that that's and that there's been a cultural shift we just live for the here and now I mean that as we -- talk about -- on the show.
About -- for since the beginning of time in America we've always believed that our children.
We'll do better than we will we want that we want the children my hand off a better legacy -- they can do better than we did.
And now there seems to be this shift in the country where we're saying.
You to support me yeah no I -- at their happening.
Huge shift and I think that it's up to us.
Because we wanna find solutions to this problem obviously it's up just and number one talk to our kids about savings -- -- -- have to understand out of the gate.
That this is something -- have to do over their lifetime and a lot of people say pay yourself -- savings account.
Pay your 401K first we have to consume -- I mean maybe you're not saving for that down payment any longer maybe you're -- -- -- -- there are a lot of wonderful homes that are for -- now in this country as a result of everything that's happened in the housing market when you're looking at your student debt -- And you're looking -- what you want to do for college you have to decide on a practical field.
At a college that you could afford -- -- we have to train our kids to not consume and go into debt today.
-- plan ahead for there.
You -- -- -- they don't listen to Melissa Chris Wright and has this added the survey showed 20% of Americans have no confidence not don't have -- go to retire.
I -- please I've been telling you money.
And what do you what are we know confidence -- have -- go to retire comfortably -- the highest in the studies history.
So these people don't believe they're ever going to be able to retire so they don't actually listen ballistic and they don't have the money -- they just don't have the drive to do it.
Then they find themselves without money 65 years old.
What happens to them they look to bid to the government and does the government have the money.
Now obviously we you know we know that these Social Security trust fund is a joke there is no trust fund there.
We know that the demographics are shifting and we're gonna have fewer people in the workplace with lower incomes.
Paying under a system where we're trying to support more and more people who are retired.
It is in part the sort of -- generation coming of age the you know what about me.
I'm going to live in the here and now forget about tomorrow mentality that is playing under those.
Honestly you know none of this is that -- come as a surprise we know that life -- expectancy has been growing and growing that's predictable we know that that baby boom generation is going to reach retirement age with fewer people in the workforce -- -- You know none of this should come as a big surprise we've we've seen this train coming for decades.
Now we like to cut things off like a minute let me ask you Leslie is the wife of a doctor.
Should people who had so little on their bank accounts to start eating a bunch of pizza.
Can't really see -- and I get tricky I'd rather eat a lot of middle and how I want -- it's a shorter time freely to be able to support perhaps apple.
You know -- -- my husband constantly gives the lectures on prevention is an orthopedic surgeon but he does talk about nutrition diet exercise.
And honestly don't get mad -- -- guys but I said.
Honey if you talk to them about prevention.
You're gonna go out of business he looked -- -- -- because they don't listen they don't listen.
I go into an aside it's true well don't we don't -- if people listen there'd be no smokers in this country we haven't we -- raising -- -- -- -- but -- I think it -- Back to one thing that we said the beginning -- -- discussion that it's going -- the middle generation whether they like it or not to support.
But their children and the older people in their family and there's sort of no way around that we're also going to be working.
A lot longer I mean that's just a fact of matter pattern I've had a job since I was six months old -- -- I'm I'm expecting to continue to work he -- -- very.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And our panel will thank you with snitching discussion we're gonna live longer but we're going to be really force policy -- -- I think if the world about the would you like me.
Filter by section