Hurdles to Retirement


Barry Armstrong

Founder and President, Armstrong Advisory Group


Ten years ago, the labor participation rate was 66.2%1.  As of March 2017, that number was down to 63.0%1.  The rapidly growing number of workers entering retirement is likely driving the decline in the labor participation rate.  Despite the growing number of retirees, many Americans do not have much money saved for their golden years.  This troubling reality represents one of the greatest hurdles to retirement.


The Impact of the Great Recession


A primary reason why many Americans are not well-suited to retire is the lingering effects of the Great Recession.  According to a recent survey conducted by the Transamerica Center for Retirement Studies (TCRS), only 39% of workers indicated that they have completely recovered from the Great Recession2.  The TCRS survey also found that only 15% of respondents are totally confident of their ability to retire while 51% worry that they will outlive their retirement savings2.  The stunningly low level of retirement confidence among baby boomers is a clear symptom of the slow recovery of our nation’s economy.


The $147,000 Question


Unfortunately, the concerns many Americans feel about their retirement situation are 100% valid: the TCRS estimates that the average baby boomer has just $147,000 saved in all household retirement accounts2.  Furthermore, nearly a quarter of older Americans have less than $50,000 saved for retirement2.  The aforementioned survey indicates that a majority of respondents anticipate that they will have to work past the age of 65 or do not plan to retire at all2.  Although the hurdles to retirement are many, there are steps you can take to prepare for a happy and comfortable retirement.  It is never too late to develop a plan.


Planning for Retirement


A good way to develop a better understanding of your ability to retire and avoid outliving your money is by sitting down with a financial advisor.  An advisor can help you better understand your current financial situation and assist you in establishing retirement goals.  They can also provide investment recommendations that fit your needs.  According to a recent report published by Time, 13% of Americans have at least $300,000 saved for retirement3.  Although these savers comprise a small minority of the population, they do provide demonstrable proof of the power of saving, investing, and obtaining sound financial advice.  With the right strategy, retirement does not have to be an improbable dream.

Barry Armstrong has over 30 years of experience in the financial industry.  He founded the Armstrong Advisory Group in 2004 and has been sharing his financial knowledge with New Englanders on a daily basis during his Boston-based radio broadcast for nearly 20 years.  Learn more about Barry and the Armstrong Advisory Group at  Securities offered through Securities America, Inc.  Member FINRA/SIPC and Advisory Services offered through Securities America Advisors.  Barry Armstrong, Representative.  Representatives of Securities America do not offer tax advice.  Always seek the assistance of a tax professional familiar with the laws in your state.  Armstrong Advisory Group and Securities America are unaffiliated.  April 2017