National Save for Retirement Week is October 20-26. This would be a good time to take stock of your current retirement plans and check to see if you’re on track. Although to be honest, you shouldn’t need a national week set aside for such important financial housekeeping. Have you saved enough? Will you have saved enough when the time arrives? These are questions that you and your financial planner should be considering on a regular basis.
Retirement is the act of withdrawal from one’s position or occupation or from an active working life. If you are no longer actively working then you must have a way to provide for the life you are used to living. If you are used to a lavish lifestyle and are ready to scale down, then at the very least you need sufficient funds set aside. You have to make sure you have a place to live and food in the refrigerator and perhaps the occasional round of golf or a vacation trip here and there.
A worrisome 22% of Americans have less than $5,000 in savings earmarked for retirement, according to some 2019 statistics. On average, survey respondents say there's a 45% chance they'll outlive their savings, yet 41% haven't taken any actions to address the issue.
The older generation who reach retirement age may dream of putting their feet up and relaxing, or visiting with the grandkids on extended holidays as they have a guaranteed nest egg, but that is not the case for all. Not everyone has budgeted and invested accordingly. Four in ten workers say that they or their spouse have not saved money for retirement.
In 2016, people aged 65 and older accounted for just 15% of the population in the United States. Retirement is becoming something that more and more of the American public will have to face and more of them at one time than we are used to. The demographic of 65 and older is growing. By the year 2060, they are expected to make up more than 24% of the population.
When retirement age does come knocking, many people seem to want to downsize and enjoy the idea of having fewer chores and cleaning or the daily responsibilities of a workaday world, while still maintaining a great quality of life. A whopping 38% of Americans are considering downsizing once they retire.
Studies also show that 44% of respondents have been considering what they will be filling their time with when they are retired, and 38% were estimating the amount of money they would be receiving from their Social Security benefit at their planned retirement age.
For many, it seems that retirement planning is on track, and everything is going as per the strategy all right, but there are still large portions of the population that need help getting to their goal of actual retirement. Being retired should mean you can enjoy life, not having to find a part-time, low paid, menial job so that you afford medical care.
If you are behind or haven’t saved at all, use this National Save for Retirement week as a reminder to get going, full steam ahead. It’s never too late to start saving.
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