In this article, EuroPacific senior economist, Michael Pento talks about his concerns regarding the state of retirement in America. He does such a good job talking about it, that I'll let you read his opinion in his own words...
"There's good reason to worry," says Michael Pento, senior economist at EuroPacific Capital. "Retirement is on life support, if not indeed dead as we know it today," he tells Aaron Task in the accompanying interview.
"Where is the income going to come from to sustain a viable retirement?" Pento asks. The problem, as he sees it, is simple -- income and asset values have plateaued over the last decade, while pension and entitlement programs are underfunded.
Pento recently penned a piece called "The Extinction of Retirement," detailing the financial problems facing Americans on a fixed income.
"In the past many retirees could count on accumulated stock market wealth to help fund retirement. Not so much anymore. As of this writing, the S&P 500 is now no higher than it was in January of 1999. For over 12 years the major averages have gone nowhere in nominal terms and have declined significantly in real (inflation adjusted) terms. The dreams of becoming rich from investments have crashed along with Pets.com and Bernie Madoff. Then there is always the supposedly safest asset of all -- a retiree's home.
