It’s just a fact of life – we all grow older. Until someone actually discovers the fountain of youth, we all have to face the fact that the time will come when we need to finance our older years. And that requires retirement planning.
Making sure that you have enough set aside for your retirement years should be a priority for just about every American. Of course, you may hope your number will come up in the lottery or your horse will win at the races, but that is not something you can rely on.
According to research from the Insured Retirement Institute, 76 percent of Baby Boomers weren’t confident that they had saved enough to prepare them for retirement. As the saying goes, hindsight is 20/20.
The data revealed that 68 percent believed they should have saved more in their lifetime, and 67 percent said they wished they had started saving earlier in life.
How much have people actually saved? The Employee Benefit Research Institute's 2017 Retirement Confidence Survey showed that 21 percent of retirees had less than $1,000 saved for retirement. Relying on a tiny amount of money to get you through retirement years is a bad idea, but it seems that a lot of folks are stuck in a bad situation especially when it comes to Boomers. According to the Government Accountability Office (GAO), close to 30 percent of households age 55 and older have neither savings nor pension plans. No IRA. No 401k. Nothing at all.
It’s not just people over 55 that are in trouble. America is in trouble. Statistics show that almost half of American households have nothing saved for their retirement years and don’t even have a pension in place.
If you take into account the findings from The Bureau of Labor Statistics, the picture looks bleak indeed. The average American household spends more than $40,000 a year during retirement, while the average American citizen collects less than half of that from Social Security over the year.
Starting to plan for your retirement early is the only way to make sure you have enough set aside when the time comes to enjoy your golden years. Without a solid foundation under you from savings or investments, or preferably both, you won’t be able to stop worrying about your finances. This will cause stress, and that is not the way you want to retire. Get as much professional advice as you can, and work out a strategy that works for you.
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