In 2006, Larry Millette believed that if he continued to work at International Business Machine’s (IBM) factory for another fifteen years, in addition to the sixteen years he worked at Digital Equipment Corporation, he would retire comfortably on the combined pension plans. After working twelve-hour shifts at the IBM factory for eleven years, Larry Millette only has $30,000 in his pension account. Instead of fulfilling his dream of retiring to spend time with his family and travel, Larry Millette is now planning to work until he is physically unable.
Most Americans believe that if they work for forty to forty-five years they are entitled to a luxurious retirement. The common belief in “the Great American Retirement Dream” is problematic because comfortable retirements are perceived as guaranteed, as opposed to earned through a lifetime of active saving and planning. Currently, most Americans are unprepared for retirement because of their failures to contribute to, and properly manage, their retirement accounts. . . .