Nobody starts their working lives thinking that after working forty years they’ll be poverty stricken. No, we all start our working lives full of enthusiasm with the belief that the future has something special in store for us.

A study in 2005 by the prestigious private bank Coutts and Co (the bank the Queen of England uses) found that “Over 50% of people believe they may become a millionaire in their lifetime.”  That's £1 million, or approximately USD $2.0 million.

Similarly, a 2003 Gallup poll found that 51% of Americans aged 18 to 29 thought it was very or somewhat likely that they would be rich one day. (That number dropped to 8% for those 65 and over!)

Inaccurate data
One of the most published pieces of research I’ve come across states that of 100 people who start work at age 25, by the age of 65:

  • 1 is wealthy
  • 4 are financially independent
  • 3 are still working
  • 63 are totally dependent on others (government, friends and charities)
  • 29 are dead

This research can be found in dozens of websites (usually associated with multilevel marketing promotion) and in some of the most popular self-help business books on the market. It’s usually attributed to the U.S. Bureau of Labor Statistics. Unfortunately, it’s not true. It was totally made up and been copied by people until it developed a life of its own.

The head of longitudinal research at the Bureau of Labor Statistics, who oversees all statistics they produce that cover multiple years like this, confirmed that the data is indeed false.

So let’s look at some of the claims.What are the chances that a person will die between the age of 25 and 65?According to the inaccurate date is 29%. The National Centre for Health Statistics produces a life table that shows that those who survive to age 25 have an 84% probability of surviving to age 65. In other words, the chances of someone dieing between age 25 and age 65 is 16%, not 29% as stated in the false research.

In addition, the false research states that at age 65, 3 people will have to work because they can’t afford to retire. Unfortunately, the reality is far worse. A report by the U.S. Labor Department states that in 2000, 24.4% of 65- to 69-year-olds and 13.5% of 70- to 75- year-olds continue to work.