Kiplinger has published a new infographic on the cost of retirement. Because of the Great Recession, many people are not saving for retirement. Instead they are using their income, if they have one, to pay off debts.

Kiplinger says that to have an income of $40,000, one would need to save $1 Million. Essentially what they are saying is that you need $1 Million to be in invested in 30 year United States bonds (which are yielding 4.2% right now) in order to get a $40,000 income.

Color me skeptical, but I have to wonder if the real problem is not that people are not saving for retirement. I wonder is the real problem, for Kiplinger, is that not enough people are buying their services during the Great Recession and its aftermath. Thank you very much Kiplinger, but the 30 year bond, or stocks, or condos in Florida, or Flip-This-House may not be the best place to put my hard earned cash.

For many, saving for retirement is a difficult process even during the best of times. And in 2009, according to a recent survey from Wells Fargo, 20% of pre-retirees have reduced funding to their retirement savings. Many who once thought they were secure are now forced to delay their retirement plans by several years. What’s even more troubling is that 41% of women and 32% of men now believe they will have to work after retirement just to make ends meet. Considering that saving $1 million will only amount to about $40,000 per year for the average retiree (assuming you stick to a widely accepted rule of thumb that says you should limit your withdrawals to 4% of your savings during your first year in retirement), it’s easy to understand why retirement has become almost a luxury.

via The Cost of Retirement @ Kiplinger.