Posted on March 19, 2012 by Steve
Not very – consider some of these stats from a recent NYT article on the impact of the 2008 financial crisis:
- 36% of American workers age 55 to 64 say they have less than $25,000 in retirement savings
- 52% of American workers age 45 to 54 say they have less than $25,000 in retirement savings
- 33% of retirees get more than 90% of their income from Social Security (the avg SS payment is ~ $1,000 per month)
- 17 % of workers have defined-benefit pensions
- 39 % have 401(k)’s
- 53 % of all workers have neither…
To compound the problem some professional investors are predicting lower long term returns for stocks of about 5% vs. 8-9% historically, based on the historical relationship with bonds which are now providing lower returns.
Anyway – some things to consider as you plan your own future. Good luck!
Posted on March 5, 2012 by Steve
Americans are gaining 1.1 years of life expectancy every five years -
This article does a good job of summarizing the costs faced by people and our society as we continue to extend life expectancies.
Today there are approximately 53,000 Americans who are age 100 or older, compared with just 2,300 in 1950.
Posted on November 17, 2011 by Erin
Do you plan on working longer than the average person’s lifespan? Sounds ridiculous, but that’s the new face of retirement. In a survey done by Wells Fargo, it was shown that Americans have only been able to save 7% of what they need for retirement. And 30% of people that were close to the age of 62 have actually saved less than $25,000 for their retirement. The outcome is that people are now expecting to work until they are 80 years of age or older. No more is there a concrete age that you plan to retire by. The new reality is, people are better understanding the amount of money they will need to have a good retirement. If it takes working until they are 75 to reach that goal, then that is what they will do.
It also turns out that many people are choosing to work longer regardless of their financial situation. Granted, 42% of those surveyed said they hope to have a job that has less responsibility than their current job, the trend is to stay in the workforce and remain active for as long as physically and mentally possible. How do you feel about working past the average retirement age of 65? Is this something you want or have to do?
How much money have you saved for retirement? How long will it last? Find out by using our retirement calculator!
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Posted on November 7, 2011 by Erin
Imagine making $50 million in your career. Now imagine after you retire, you have to take up another 9-5 job because you have lost all of your earnings. Seems almost impossible, right? Think again. It was reported last week that NFL quarterback Mark Burnell did just that. This all happened apparently due to multiple bad investments that he had made over the years. He invested in 9 companies, six of which are already no longer in business. He put money into a high-end real estate company that bottomed out during the start of the housing crisis and he also lost every dime he put into the fast food chain, Whataburger. He’s also facing six different lawsuits and may have to pay almost $25 million towards them.
You do have to feel bad for the guy, but he does provide a good blueprint for how NOT to prepare for retirement.
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Posted on July 15, 2011 by Erin
Baby Boomers are changing the face of retirement. Just ten years ago, the age at which most people hoped to retire was 64. Now in 2011, that age has increased to 69 according to a survey done by Harris Interactive. Some of it has to do with the current economic picture – people are trying to gain back what they lost in the markets. Surprisingly though, many people are postponing retirement because they are not ready to give up the satisfaction they receive from their work. That is definitely not to say that everyone wants to work a full time job for the rest of their lives, but it may mean working a part time job a few days a week or even volunteering their time. Many people just aren’t ready to live a life of pure leisure.
Does this sound crazy to you? Do you want to work part time in retirement or do you think you’ll be ready for a permanent vacation?
Read “Redefining Retirement Post Recession” the full survey from Harris Interactive.
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Posted on June 2, 2011 by Erin
What would you do if you were forced to retire today? Would you be financially ready? Most people have an exact date in their head of when they would like to retire. But many people are forced into early retirement due to their company downsizing, health problems or having to care for a loved one.
One way to prepare for the scenario that early retirement could become a reality is to take a step back and really look at your situation. If you were forced out of your job today, would you have health insurance? If you are under 65 and not yet eligible for Medicare, knowing that you may have to pay into COBRA or find your own personal plan may help soften the blow if the time comes. Also, look at what part of the country you’re located in. Is it too expensive for a newly decreased budget? The difference in pricing throughout the country is so large that by just moving to a new and cheaper location, you may be able to make your financial future a little more secure.
Get more tips and read the full article, “How to Cope With a Forced Retirement,” here.
Is you retirement plan strong? Find out here with our Retirement Calculator.
Why on Earth would you want to work during your retirement? Read some reasons here!
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Posted on May 25, 2011 by Erin
The recession has impacted everyone, but it has been especially hard on American’s 50 and older. In a study by AARP, it was found that many who had carefully planned for their retirement are now finding themselves having to question what their financial future holds. Many surveyed said they are now planning on having to work part time in their retirement. This is due to their loss in confidence of being able to retire with enough money to last them through their entire retirement. Others surveyed reported a painful recession experience due to declining home values and forced unemployment.
How have you weathered the recession? Were you able to remain employed? Did your retirement plan remain the same? Did you have to reevaluate or change things?
Read the full article, “Recovering From the Great Recession: Long Struggle Ahead for Older Americans,” here.
Will you run out of money in retirement? Find out by using our calculator.
Why are people working in retirement? Find out here.
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Posted on May 18, 2011 by Erin
34 percent of retirees ages 65 and older, get 90 percent of their retirement income from Social Security. While the old adage, “don’t put all your eggs in one basket” definitely rings true for retirement plans, the reality is that many people have to rely on Social Security. Here are a few ways to make your retirement still happen if Social Security is your primary source of retirement income.
- Boost Your Benefits: Did you know that if your hold off on taking Social Security until you are at your full retirement age (rather than immediately at 62), you can increase your payment for each year you delay your claim?
- Do You Own a Home That Has Equity Invested?: Use it! Reverse Mortgages are allowing homeowners that are 62 or older and have little or no mortgage to tap into this money. Many use the loan as an emergency line of credit to fall back on if needed.
- Continue Working: Maybe not the suggestion retirees want to hear when they are ready to retire! But holding a part time job doing something that you truly love can help your spirit and your wallet.
What do you think? Is it possible to retire on Social Security alone? Is it wise? What’s your plan to have a great retirement?
Read the full article, “How to Retire on Social Security Alone.”
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