The good old days of working hard for 30+ years and then retiring with a pension plan and social security or even just social security are in a sharp decline if not over. Certainly if you are not close to age 62 the likely hood that social security will be all the retirement income you need is very low. With the ever growing medical expenses more and more baby boomers are likely to outlive their retirement income.
The stagnant economy also presents a threat to retirement income in investments other than social security.
From CNNMoney this disturbing news:
Fewer Young Adults Hold Jobs than Ever Before
The share of young adults with jobs has hit its lowest level since the government started keeping records just after World War II.
By the end of 2011, only 54.3% of those between the ages of 18 and 24 were employed, according to a Pew Research Center report released Thursday. And the gap in employment between the young and all working-age adults is roughly 15 percentage points — the widest on record.
The Great Recession hurt the young more than most other age groups. Their employment decline has been steeper and their median weekly earnings fell by 6%, while holding steady for others, Pew found.
Only part of this can be explained by the growth in college attendance. While a greater share of 18- to 24-year-olds are in school than ever before, the employment rate has fallen regardless of enrollment.
For those in college, only 40.7% had jobs last year, down from 47.6% in 2007. And the employment rate for young adults not in school dropped to 65%, from 73.2% in 2007.
The jobless rate for 18- to 24-year-olds was 16.3% last year, compared to 8.8% for the overall population.
The weak job market has altered young adults’ lives and aspirations, the report found. It backs up earlier studies showing that young adults have had to delay major life decisions.
Nearly half of 18- to 34-year-olds say they’ve taken a job they didn’t want just to pay the bills, while another quarter have accepted unpaid work in order to gain experience. Nearly a third postponed getting married or having a baby. One in four moved back home with their parents after living on their own.
But the young have maintained their optimism. Some 88% of 18- to 34-year-olds say they either have earned enough money now to lead the kind of life they want or expect they will earn enough in the future. Their older compatriots have a much darker view, with 28% of people over the age of 35 saying they will never earn enough.
With fewer young adults working, there are fewer workers funding social security compounded by more baby boomers reaching retirement age and drawing social security both makes the future of social security payments tenuous. If it is not too late make approach social security like icing on the cake and have a more reliable plan. An annuity may be a good option and you should consult a financial advisor.