For Many 67 Is The New 65 When It Comes To Retirement

A new poll By Gallup has found 26 percent of people expect to retire before age 65, with 27 percent expecting to retire at age 65 and 39 percent after age 65.

The percentage that expects to retire after age 65 was up from 21 percent in 2002 and 12 percent in 1995. 

The Gallup poll found an increase in the average age at which retirees actually retired -- from age 57 in 1991 to age 60 today. The average retirement age first reached 60 in 2004 and has generally held there since.

That average should increase in future years if current non-retirees delay retirement, as they say they will.

The younger non-retirees were more optimistic about being able to retire at an earlier age than those closer to retirement. Those currently age 40 and under expect to retire at age 65, compared with an expected retirement age of 68 for those 40 and older

The survey also indicated a new low of 38 percent of non-retirees who said they will have enough money to live comfortably in retirement, down slightly from 42 percent last year and 59 percent in 2002.


It's easy to conclude that the dream of retirement is going to stay just a dream for many. The majority of retiree's  in their 60's, 70's, and 80's will continue to be employed out of necessity.

Korean Baby Boomers In Worse Shape Than American Counterparts

retirement (Photo credit: 401K)

A lot has been said about growing government and household debt and its risks. In a Bank of Korea study it was found that Koreans age 50 and up are responsible for fifty percent of all consumer debt.

The baby boomer generation, which refers to people born in Korea between 1955 and 1963, is falling into the poverty trap of old age. With a people that prides itself on strong family bonds, the 50-somethings are the most squeezed financially because they have to support both their parents and children.

The Bank of Korea study reaffirms the troubles confronting the retiring baby boomer. Most of them require help because of falling home prices or those that need loans to start their own businesses in the latter years of life.

Like most retirees, Koreans struggle to work longer. People with doctoral degrees and former managers at large firms, now stand in line to work as supermarket cashiers, that pay $800 a month.

Studies indicate Koreans retire at 54 years old on the average, but work until 71 years. Little wonder the nation’s notorious old-age poverty rate of 45.1 percent is more than three times higher than the world average of 13.5 percent. (In the United States the poverty rate of the elderly is at 10 percent.) If nothing is done, the baby boomer problem will provide an added source of inter-generational conflict, adding to the unemployed youth problems in Korea.

To their credit, the government isn't ignoring the situation, but it has fallen far short of solving the problem.

The Korean government has encouraged people to work longer and take a more active roll in their retirement financial needs. These are meaningful steps, but fall far short of a fundamental remedy, which is raising the retirement age. The time has long pasted for Korea to gradually extend its current age limit of 55-58 to 60-65, as is the case in Japan and many European countries.

Businesses, particularly large companies, are the strongest opponents to a prolonged working age, mentioning the high jobless rate among the young. "You are taking away the jobs of your children,” they say. But labor experts find little direct relationship between retirement age extension and the youth unemployment rate, as most companies do not fill the void left by retirees with fresh workers. These are two different employment issues to be tackled separately.

This is the first Korean generation that supported their parents but do not expect similar services from their children. Koreans and their government are facing the same kinds of retirement funding problems that we in the U.S. face. Koreans face an unrealistic reliance on the governments efforts to supplement everyone's retirement. It's interesting that the Koreans are just as unprepared for retirement as Americans are.

Prepaid Card Use Is On The Rise [Infographic]

For most people the checking and savings accounts that the banking industry provides for us is sufficient. But for a small and ever growing percentage of Americans it doesn't work. For people with a steady income and an ability to maintain a subjective balance, the banking system provides a decent product. For some it just doesn't work. Enter prepaid cards.

Prepaid cards allow the unbanked to have a way to participate in the banking systems requirement for plastic cards. It also allows people to have an amount of money saved that is easy to access through ATM's. While there are still banks that provide a free checking accounts, if you follow their rules, the prepaid card user enjoys no such thing. The unbanked is subject to a slew of fees, which are mostly excessive.

The infographic below demonstrates the statistics of a growing use of prepaid cards.

Infographic courtesy of  caxtonfx.com

Debt Relief Options in Canada

Many consumers have spent time in recent weeks and months researching different debt relief options available to them in Canada. Credit card debt is among the biggest challenges people face with their budgets today. High account balances create high monthly payments. This is coupled with high interest rates, which make those high monthly payments fairly ineffective at reducing debt balances quickly. Different debt programs are available to help consumers more quickly eliminate debt. However, before choosing a debt program, consumers should take time to explore these options in detail.

Two Main Types of Relief Options
There are two main types of debt programs available to assist consumers with their financial situation today. These include debt consolidation loans and debt settlement. Through a consolidation loan, all credit card debt is refinanced into a single loan. No debt is eliminated through the refinance process, but the new loan is structured to provide faster repayment results. Credit cards are difficult to pay off because they typically have a high interest rate as well as a revolving term. Most consolidations loans have a lower interest rate and a fixed term, which allows account balances to be paid off within a few years. The other option to consider is debt settlement. This solution can create an immediate reduction in debt balances. Through this process, a consumer first must provide a lump sum of cash to be used as a negotiation tool. A professional debt negotiator contacts creditors to request a reduction in account balances, and the lump sum of cash is used as an incentive for them to agree to a balance reduction. If they agree to reduce the balance, they will receive a portion of that lump sum for immediate repayment of some of the debt.

Which Relief Option Is Best?
The two options are quite different, but both can have significant and beneficial results on a consumer's financial situation. Consolidation loans may require a consumer to have good credit scores initially, so this may be more suitable for a consumer who has managed to pay most bills on time despite struggling with debt. Debt settlement, on the other hand, does not require a consumer to have a certain credit score. It is more suitable for those whose credit has already been affected by their debt situation. Further, a lump sum of cash is necessary for this strategy to be successful, so a consumer will need access to cash either through equity in a home, by saving for it or through another option. There is no solution that is best for everyone, so a consumer will need to review the options and choose the solution that is right for him or her.

Estimating the Results
Consumers can utilize a debt calculator to estimate monthly payments with each solution. This can help a consumer to determine which relief option is more affordable. Further, these calculators can help a consumer to determine the results of each program and see how quickly debt may be paid off. Using a calculator can help a consumer to determine which solution may be best. 

It can be difficult for a consumer to pay high account balances off on his or her own. These different relief options are available to make repaying debt and becoming debt free a faster and easier goal to accomplish.