| Nobody starts their working lives thinking that after | | | | report by the U.S. Labor Department states that in |
| working forty years they'll be poverty stricken. No, | | | | 2000, 24.4% of 65- to 69-year-olds and 13.5% of 70- |
| we all start our working lives full of enthusiasm with | | | | to 75- year-olds continue to work. Retirement truth: |
| the belief that the future has something special in | | | | So, assuming you reach age 65-which 84% of |
| store for us. A study in 2005 by the prestigious | | | | 25-year-olds will-what does the average retiree's |
| private bank Coutts and Co (the bank the Queen of | | | | finances look like? Not very good. According to the |
| England uses) found that "Over 50% of people | | | | U.S. Department of Health and Human Services, "the |
| believe they may become a millionaire in their | | | | median income of older persons (age 65 and above) |
| lifetime." That's £1 million, or approximately USD | | | | in 2002 was $19,436 for males and $11,406 for |
| $2.0 million. Similarly, a 2003 Gallup poll found that 51% | | | | females." Furthermore, "the median household income |
| of Americans aged 18 to 29 thought it was very or | | | | for families headed by persons 65+ in 2002 was |
| somewhat likely that they would be rich one day. | | | | $33,802." The U.S. Census Bureau reports "the median |
| (That number dropped to 8% for those 65 and | | | | net worth of elderly households (with a householder |
| over!) Inaccurate data: One of the most published | | | | aged 65+) in 2000 was $108,885." However, "home |
| pieces of research I've come across states that of | | | | ownership accounts for $85,516 or 78.5% of this net |
| 100 people who start work at age 25, by the age of | | | | worth," which leaves only $23,369 on average to |
| 65: * 1 is wealthy * 4 are financially independent * 3 | | | | fund their retirement. With an average of only |
| are still working * 63 are totally dependent on others | | | | $23,369 to fund your whole retirement, where does |
| (government, friends and charities) * 29 are dead | | | | the average retiree get the income they need to |
| This research can be found in dozens of websites | | | | survive? The Bureau of Labor Statistics found that |
| (usually associated with multilevel marketing | | | | government-provided social security is the major |
| promotion) and in some of the most popular self-help | | | | source of income (providing 50% or more of total |
| business books on the market. It's usually attributed | | | | income) for 66% of those aged 65 and older. Thus, |
| to the U.S. Bureau of Labor Statistics. Unfortunately, | | | | two thirds of all people over the age of 65 are |
| it's not true. It was totally made up and been copied | | | | totally dependent on social security to maintain their |
| by people until it developed a life of its own. The | | | | standard of living. Furthermore, social security |
| head of longitudinal research at the Bureau of Labor | | | | dependency rises from 50% or more of total income |
| Statistics, who oversees all statistics they produce | | | | to 90% or more of total income for one-third of |
| that cover multiple years like this, confirmed that the | | | | those aged 65 and older, and is the only source of |
| data is indeed false. So let's look at some of the | | | | income for 22% of them. The sad truth is that being |
| claims. What are the chances that a person will die | | | | "average" means being poor and mostly dependent |
| between the age of 25 and 65? According to the | | | | on the government to support you in your later |
| inaccurate date is 29%. The National Centre for | | | | years. 66% of those 65 and older have to get 50% |
| Health Statistics produces a life table that shows that | | | | or more of their income from social security and |
| those who survive to age 25 have an 84% | | | | 24% of 65- to 69-year-olds are still working. |
| probability of surviving to age 65. In other words, the | | | | Emlyn Scott is the founder of Rich1Percent, investor |
| chances of someone dieing between age 25 and age | | | | and wealth creation author. He is a wealth creation |
| 65 is 16%, not 29% as stated in the false research. | | | | and finance expert with 4 post graduate qualifications |
| In addition, the false research states that at age 65, | | | | and has amassed a multi-million dollar investment |
| 3 people will have to work because they can't afford | | | | portfolio. |
| to retire. Unfortunately, the reality is far worse. A | | | | |