The Retirement Conundrum

Here is a simple chart from Prof Greg Mankiw's blog (originally from the Economist) that quickly demonstrates the primary problem in funding retirement today. Over the past 40 years or so the period of time in retirement has roughly doubled in the U.S. All of this while savings have declined and lifestyles increased. Not exactly a formula for success.

What is required? Far higher savings both inside and outside retirement plans; postponing retirement until age 70 or so; avoiding huge costly mistakes (big bet business /real estate ventures, divorce ,etc.) ; and maintaining long term discipline.