Most of the rest are unprepared. Fifty-four percent of households with middle incomes—ranging from around $48,000 to $95,000 a year—don’t have enough saved to maintain their quality of living in retirement, according to the Boston College Center for Retirement Research. Some of those who saved were hit by unforeseen health-care costs. Others took on debt for education. Yet more made investment mistakes or lost their savings in the 2008 financial crisis. WSJ October 5, 2018
All of the above is true, of course, but there is no need for it to be so. Nowhere near 54% of households had unmanageable health-care costs, especially beyond those covered by insurance. Debt for education is a questionable investment, but it is what it is.
When it comes to investment mistakes, a bit of education and attention to the matter would have avoided that problem. As far a lost savings after 2008, there is simply no excuse; again education.
But here we are, millions of people on the road to retirement who will need a bailout of one kind or another. There are already calls for increasing Social Security benefits, but if that occurs, it won’t mean much even if benefits are increased by 10% or so which would require significant tax increases. For example, the average monthly Social Security benefit granted in 2017 was $1,413.08. How significant is an increase of $141?