Debt nation

Survey after survey shows too many of the baby boomers approaching retirement age don't have the financial resources to stop working and maintain the lifestyles they have grown accustomed to.

Not that it isn't possible. There are Americans who have put aside a portion of their earnings throughout their working lives. There are Americans who have taken full advantage of tax incentives, such as IRAs and 401(k) accounts, to prepare for retirement. There are Americans who have eschewed debt and have relied on a cost-saving pay-as-you go consumerism.

Those examples of thrift and planning for the future, however, are far too rare. In a series of Associated Press reports last week, some grim statistics were presented: On average, Americans currently are saving less than 1 percent of what they earn. At the same time, making minimum payments on the average debt Americans have incurred amounts to 18 percent of disposable income.

There are good reasons to worry about the low savings rate and high consumer debt in the U.S. But consumer spending is also a major force in our robust economy.

Meanwhile, the world's No. 2 economy -- Japan -- follows a different model, one where a comparatively high savings rate is matched by disdain for consumer credit -- only a third of Japanese homes are encumbered by mortgages.

What does America's penchant for spending and credit hold in store for the future? No one know for sure, but economists predict many Americans will have to work well beyond the traditional retirement age of 65 just to make ends meet.

And bankruptcy lawyers worry that more and more Americans will be forced to seek relief under a stringent revised bankruptcy code that will make life for spendthrifts significantly more unpleasant.

Most financial experts say the first step out of the financial morass so many Americans find themselves in is to find ways to get out of debt followed by a stringent savings plan.

Far too many Americans, however, are likely to do nothing until it's too late. Then the burden of poor money management by so many will likely fall on those who have spent prudently and saved for a rainy day as well as retirement.