Is there really a retirement crisis? Are things as bad as some data suggests? Perhaps not.
The data shows that people in America are better off than you might think. Only 4 percent of retirees felt that it was hard to get by. 81 percent of retirees described their retirement as either as good or better than their preretirement years. As far back as 1992, only 65 percent of retirees in the U.S. felt that way.
That’s not the only good news. Eight out of every ten retirement households today have enough money to live in comfort. The media tells us that there are loads of retirees who are going to be at the poverty level, but statistics show that retirees with incomes below the poverty threshold dropped from 9.1 percent in 1990 to just 6.9 percent in 2012. And if you compare the data to 1959 when the official poverty rate stood at 22.4 percent, you can see that Americans overall are doing better than they used to.
Over time, things change. That is the only thing you can absolutely guarantee. Being prepared is the best way to make sure you are safe and secure. Investing and saving over time will give you the peace of mind you need, especially as you get older.
If you have a pension, you’re in a far better position than folks who will rely on Social Security alone. You’ll have at least double every month compared to others who only have their benefit check to look forward to. Transamerica research showed that Baby Boomers have an average of $164,000 in savings, which on its own might not sound like a huge amount but when you compare that to 2007 data when the median retirement savings were $75,000, you can see that it has jumped significantly.
No matter what your situation or how scary headlines can be, the data shows that Americans are better off than they used to be. That doesn’t mean everyone has nothing to worry about, but it does give hope for the future. Making sure you save and invest is a wise thing to do and you should always have a financial plan in place.
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