Tuesday, August 29, 2006


Retirement: Dreams or Reality?


Early August 2006 saw the launch of a new website, Eons.com. According to their press release, "Eons.com has interactive games to build brain strength, news on entertainment and hobbies for older people, a personalized longevity calculator and tips to live longer." A great idea from the founder of Monster.com, this networking community for the over fifty set boasts a section devoted to building a retirement dream list.(Thank you to the anonymous blog reader who sent us the URL. I later saw an article about this new site in Investment News.)

In stark contrast, a new study, courtesy of the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI), suggests that retirement dreams may be hard to achieve for the average person. In particular, Figure A6 paints a downright dreary picture, reporting an average 401(k) balance of only $102,000.

While some individual retirees will receive money from a defined benefit plan and/or Social Security, $102,000 is not much at all when you consider that large numbers of people are living well beyond fifty. While enjoying a short vacation in Arizona, I met several people who said they simply cannot afford to retire and are making adjustments. House-sharing, working more years and scaling back expectations are some of the options.

Eons' founder Jeff Taylor challenges seniors "to see how many friends and family you can inspire to live the biggest life possible. Be loud and be proud about your age." I hope people have the financial wherewithal to do what they dream, for as long as they can.
posted by Susan Mangiero at 8/29/2006 03:30:00 AM