Are Americans saving too mcuh for retierment? It seems some people think so. Which is interesting considering the national savings rate is actually negative. Are we doing this all wrong? Laurence Kotlikoff is a professor of ecnomics at Boston University. He's among a group of economists and academics that believe people should be saving less and spending more when they are younger. Less Eisenberg is the author of the book "The Number" and says that Americans don't think enough about the quality of life they want in their golden years. Both appeared on "Power Lunch."
Kotlikoff says we aren't saving the right way. He says that companies like Fidelity Investments, have calculators that come up with very high financial numbers for retirement and that those aren't realistic. He says yes--some need to save but some are over doing it.
Eisenberg says that yes--some people might be "over saving" but they really need to think about the quality of life they want in retirement. If someone is "happy living in a tree and writing the great American novel," they don't need much. And he says that even if you save "too much" --that money is not going to waste. He says there needs to be some "gas in the tank" at the end and if someone doesn't use the money--it can go for college ( for a child or relative) or whatever someone wants to do with it.