2019 is now in its final quarter, and it has certainly been quite a year. Thirty-three percent of Baby Boomers who are either at retirement age or getting close to it haven’t saved enough. Statistics show they have saved between absolutely nothing and $25,000. This is quite alarming given that you are said to need more than $1 million for your retirement years after 65.
Every day 10,000 Boomers reach the age of 65, and according to the Wall Street Journal, they are in a much worse financial state than the generation before them. This is the first time this has happened since Truman was president.
For some, it might be due to their own lack of planning. Sixteen percent of those who hadn’t saved said it was due to “not getting around to it.”
Another reason given for not saving or investing is the lack of money available. If your expenses are too high to save, you should be thinking of ways to lower your expenses so that you can set money aside.
In either of these scenarios, without savings, you will have to rely on your Social Security check, and that probably won’t be enough.
The most you can expect to receive from the SSA at age 66 is $2,861. If you live in a trailer in Florida or a small town in Nebraska you might feel that this is enough to get by. It won’t be enough in most cities in America. High rents and the rising cost of living will require a supplemental income.
Retiring can be a scary thought especially if you have not saved up enough or invested wisely. If you are looking to retire in the next decade, there is time to take heed of the warning signs and learn from other people’s mistakes.
Don’t let retirement sneak up on you. Be as prepared as possible, and you won’t regret it.
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