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Retirement reality check
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October 22, 1996: 2:04 p.m. ET
New survey reveals some seniors don't view retirement favorably
From Correspondent Jan Hopkins
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NEW YORK (CNNfn) -- Most people used to think of retirement as the "golden years," a time to take cruises and play golf. But a new survey shows one in five seniors actually associates retirement with depression, poor health and finances, and a general feeling of uselessness.
"After working 22 years for Lever Brothers, they retired me (for) $52 a month, which is chicken feed," retiree Leonard Litvinsky said. "When you spend that many years with a company, you think you're secure, no way. If it weren't for Social Security, I wouldn't be here."
Litvinsky is not alone. According to the survey, 38 percent of seniors say Social Security is their most important source of income -- yet only 7 percent believe it will continue to pay the same benefits in the future. Surprisingly, this confidence drop may be good news for tomorrow's retirees.
"Individuals are more and more aware that Social Security is going to have problems, that Medicare is going to have problems," said Dallas Salisbury of the Employee Benefits Research Institute. "So they're sitting there saying: 'I have to save.' We view that as very positive." (97K WAV) or (97K AIFF )
Because baby boomers realize Social Security won't be the safety net it used to be, many are turning to a variety of savings opportunities, such as 401(k) plans or individual retirement accounts.
But a large number of Americans remain uneasy about their financial stability in retirement. Only one third have ever tried to figure out how much money they'll need to be secure.
"The American public needs help from the employers, help from the government to save," Salisbury said. "They're very concerned about not being told the truth about Medicare and Social Security. They're ready to deal with that truth."
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