As retirement approaches, the reality of financial worries set in, especially if you’re not prepared. Many Americans are saving for their retirement, but not all have managed to save as much as they should.
There is some good news - a GoBankingRates survey shows that the number of people in the United States retiring with less than $10,000 saved has dropped 13 points from 55 percent to 42 percent. This means that more than half of Americans have more than $10,000 saved for retirement.
However, it also means that there is still over 40 percent of the population who will not have 10 grand in the bank and will effectively retire broke. How far will $10,000 go when you retire? The research shows it will not go far. The Bureau of Labor Statistics found that adults who are 65 and older spend an average of almost $46,000 a year.
If we take a look across the board, Americans have surprisingly little saved for retirement. 21 percent of Americans have absolutely nothing saved for when they stop working, and a third of Americans have less than $5,000 saved.
Many Americans are relying on their Social Security checks to save the day. There is the possibility that Social Security may not be available when some people retire in the future. Unfortunately, the SSA worked out that Social Security could be insolvent in a little over 15 years, by the year 2034.
Even if you are receiving Social Security, it may not be enough for you to retire with or survive on. In 2017, the average monthly Social Security payment received by retirees was $1,386. Add that up, and you have a very small amount for the year, just $16,632 annually just $4,500 above the 2017 poverty level for a household of one.
It seems that there is still a problem out there for our older folks, but the fact that more people have managed to save is good news. If America’s older generations are going to be able to save even more for their nest eggs, they will be in a far better position than if they wait for their Social Security checks, especially since that is now uncertain too.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice . David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC