Just A Bit Short

A new study says that Americans are now $6.6 trillion short of  what they need to retire.

The $6.6 trillion figure is based on projections of retirement and income for American workers ages 32-64. The study's authors say they arrived at the amount using conservative assumptions, including a 3 percent rate of return on assets and no further cuts in pension coverage or increases in the Social Security retirement age.

"Using other assumptions, it could be much higher," said Maria Freese, Director of Government Relations and Policy for the National Committee to Preserve Social Security and Medicare. For example, the study notes, if the rate of return matches the return on U.S. Treasury Inflation-Protected Securities (TIPS), currently 1.87 percent, the deficit balloons to $7.9 trillion. 

This announcement comes on the heels of other sobering news: Milliman Inc., a Seattle-based actuarial and consulting firm, reported this week that the funded status of the 100 largest corporate defined benefit pension plans dropped by $108 billion during August 2010. 

This comes amid recent reports indicating that a White House-created panel is considering proposals to cut Social Security benefits and raise the retirement age.

So if the Catfood Commission cuts benefits or raises the retirement age, Americans will need trillions more in order to retire.  That $6.6 trillion is a minimum number, and there's every reason to believe Americans will need a staggering $10 trillion or more just to retire.  My generation?  Screwed.

If you're not able to afford to put away tens of thousands a year in retirement savings every year, then don't expect to be even able to retire.  The government isn't going to help you.  Your employer certainly isn't going to help you.  Nobody is.

You're on your own, folks.  And that's just how the Republicans -- and increasingly some Democrats -- want it.