Working Wounded Blog: Retiring as a Wal-Mart Greeter

Oct. 24, 2007 — -- Recently I've come across a number of articles saying that whatever you have saved for retirement, it won't be enough. So keep that shoulder of yours jammed up against the grindstone, because you've still got a lot of work ahead of you. No matter how much you've saved.

One recent article referred to a newly retired executive who recently sold his business for $4 million. The problem? He would have to cut his lifestyle to survive his remaining days on only $4 million. Forced to survive in "three- and four-bedroom homes and drive mid-priced four-door sedans and minivans." I always thought that minivans were embarrassing, but who knew that they were the new shorthand for just scraping by?

Another article talked about how inflation would reduce your purchasing power. True. But won't your savings also increase over time? A 2 percent inflation rate pales in comparison to the average increase in the stock market of 10 percent. So instead of a 2 percent decline, anyone who doesn't stash their cash in the mattress would be looking at an 8 percent increase in purchasing power.

Most people view retirement as their personal pot of gold at the end of years of drudgery at work. A time when they can travel and do all the things they never had time to do during their time when they were working. That's why these articles are so frustrating to me, because after you read enough of them you can start to believe that you'll never have enough money to retire.

Are we all destined to be 80-year-old greeters at Wal-Mart?

Pardon a brief disclaimer. Many boomers and Gen-Xers are not saving enough for retirement. And unlike our parents, I've yet to meet anyone who believes that Social Security will be the safety net for us that it has been for past generations. A message that seems especially relevant this month, as the baby boomers cash in their Social Security checks for the very first time.

Given the millions of people who won't have enough money to retire, I think these articles create a level of stress that isn't helpful. People need to feel like their efforts can have a positive impact. Sure they got started saving late, but today's sacrifice will pay off in the future.