News Information and Media Site: 61% US Workers Say They Fear Retirement More Than Death, 64% Say It's Scarier Than Divorce: Survey

Newsletter Aug 29, 2024

61% US Workers Say They Fear Retirement More Than Death, 64% Say It's Scarier Than Divorce

A recent survey by LiveCareer reveals that the prospect of retirement is a major source of anxiety for American workers, with 61% fearing retirement more than death itself, and 64% finding it scarier than divorce. Economic uncertainties such as inflation, high-interest rates, and the rising cost of living are fueling these fears. Over 80% of respondents have considered delaying retirement due to financial worries, and 92% believe they may need to work longer than planned. Many fear that insufficient savings and the potential for unexpected expenses could force them to rely on loved ones, adding to the stress of retirement planning.

The survey underscores the growing concern that savings may not be sufficient to cover retirement needs. While the average balance in employer-sponsored retirement plans increased to $134,128 in 2023, this is still far below the $1.46 million Americans believe is necessary for a comfortable retirement. Inflation remains high, making everyday essentials more expensive, and low-income workers are especially vulnerable. A separate survey by Nationwide found that a significant number of non-retired investors expect to return to work after retiring due to inadequate savings, highlighting the economic challenges facing retirees.

Extended life expectancy further complicates retirement planning, as people are living longer and will need more substantial savings to support themselves in later years. The average U.S. life expectancy has increased significantly, with many retirees potentially needing to fund two decades or more of post-retirement living. This combination of economic pressures and longer lifespans underscores the importance of proactive financial planning to help ensure a secure and sustainable retirement. (Full story)

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Severely Underpaid And Often Without Benefits: Florida District Struggles To Hire Bus Drivers

The ongoing shortage of school bus drivers continues to disrupt transportation for districts across the U.S., forcing some to double up routes or prioritize services for vulnerable students. The number of bus drivers employed in K-12 schools has significantly declined since 2019, exacerbated by low pay, insufficient benefits, and increasing demands. Districts like Hillsborough County in Florida and Chicago Public Schools are struggling to recruit enough drivers despite offering incentives and wage increases. The crisis is further compounded by a lack of competitive pay compared to neighboring districts and increased demand for services, particularly for students with disabilities. Advocates, including National Education Association President Becky Pringle, emphasize the need for long-term solutions, including better pay and benefits to attract and retain bus drivers. (Full story)

'I Used To Clean Bathrooms, Now I'm The CEO': Nvidia's Jensen Huang Shares Why He'd Rather 'Torture Employees To Greatness' Than Fire Them

Nvidia CEO Jensen Huang emphasizes investing in employee development over layoffs, a strategy he believes has significantly contributed to Nvidia's success as a leading AI chipmaker valued at $3.1 trillion. Despite his demanding management style and high-pressure work environment, where employees often work long hours and face intense scrutiny, Huang argues that such challenges are necessary for greatness. He believes in nurturing potential, drawing from his own experience as a former janitor turned CEO, and frequently engages with employees on their progress. Generous stock compensation also plays a crucial role in retaining talent, as Nvidia's soaring stock price has turned many engineers into millionaires, creating a strong incentive to stay despite the tough conditions. (Full story)

Californians Are Now Being Charged Different Electricity Rates Depending On What Time They Use It—Bills Surge To Over $1,000

California residents are grappling with soaring electricity bills due to a recent change in Southern California Edison's (SCE) pricing structure, known as "Time of Use" (TOU) pricing, implemented between October 2020 and December 2021. Under TOU, electricity rates vary based on the time of day, encouraging customers to reduce consumption during peak hours when costs are highest. Many residents, including seniors and those in heat-affected areas like Antelope Valley, report dramatic bill increases, with some bills exceeding $1,000 even at discounted rates. SCE suggests lifestyle adjustments to mitigate these costs, but frustrations continue to grow as residents struggle to afford their escalating energy expenses. (Full story)

Nearly 1 in 3 UK Residents Miss Payments as Mortgage Arrears Soar by 50% Amidst Rising Interest Rates

A survey by the Money and Pensions Service (MaPS) in October 2023 revealed that 30% of UK residents missed at least one payment this year, with many encountering this for the first time. Credit card and utility defaults were most common, but missed rent and mortgage payments are rising. With elevated interest rates and nearly 1.6 million fixed-rate mortgage deals ending, average mortgage payments could increase by £1,800 annually, putting a quarter of mortgage holders at risk of default and potential home loss. Mortgage repossession claims rose 40% over 18 months, and mortgage arrears reached £20.3 billion by the end of 2023. The UK government introduced the Mortgage Charter, preventing evictions within a year of a first default and allowing borrowers to seek relief without damaging their credit. However, requests for financial aid from charities have tripled, and MaPS warns many are hesitant to seek help, urging vulnerable individuals to negotiate with creditors or seek free debt advice to regain control over their finances. (Full story)