There should be a yearly financial requirement (maybe at tax season) that every single person from age 20 through the golden years, should become familiar with the average retirement savings age, understand what it means, where they fall in this category, make a commitment of educating themselves and contributing to their future.
I am saying this because like the majority of people, I was as some would call it, blind sided when my small amount of investments and an embarrassing retirement plan that I sort of scrimped and saved for, literally fell off the cliff with the huge economy bust back in 2008. I had some money put away and with life going on around me, didn’t pay that much attention to investments and was in denial to economic news.
Let it be known that you are not alone when it comes to issues concerning rebuilding your financial needs, trying to figure out where to begin, and estimating if your retirement money will be sufficient for your golden years. What is heartbreaking is that millions of people will not
recover or will not learn to save for their future, and will unfortunately struggle through a parts of their lifes with little or no retirement to rely upon.
Taking into many factors such as, loss of income, raising kids, cost of living, bills, bills, bills and unexpected surprises, the average retirement savings age has changed dramatically. Planning, saving and achieving a decent retirement plan takes time and commitment.
How do you compare?
- about 36% of workers have less than $1,000 in savings and investments
- 60% of workers have less than $25,000
- Only 44% have tried to calculate how much money they will need to save by the time they retire
- 73% of people are without an IRA, 403(b) or a 401k, and have less then $1,000 in savings
- As can be expected the major issue of not planning or savings include:
- Cost of living/inflation
- Finding decent well paying employment
- Helping out family members
- Unexpected expenses
- Lack of financial education
- Lack of trust due to bad investments, financial scams, market fallouts
Life does get hectic but a requirement you must do for yourself and your family is to take the time now to figure out what you need in retirement, at what age you can retire. and if you need to improve your retirement savings to include extra streams of income.
Take savings into consideration:
If you had $100,000 in retirement funds, you retired at age 65, and lived until age 85, that would be approximately only $5,000 per year (give or take the little bit of interest and minus the cost of inflation) that equals out to $417 per month, but wait who wants to try to figure out social security that one might get with this?
Two out of three seniors depend on social security and one-third of seniors rely on it for at least 90 % of their income. With the average monthly amount of $1200.00 this factors on your years of what you have paid into social security depending on your work year wages.
Being employed in a loan office for many years, a friend told me how sad it was to see people attempting to get loans trying to use their monthly social security income, and she witnessed much lower monthly benefits of $1,000 down to $700.00. Where do you average?
- What this all comes down to is that you have to ask yourself the following questions:
- Have you figured out what your retirement income will be?
- Will that income be sufficient?
- Will you have to continue working during retirement?
- Will unexpected expenses and burdens affect your retirement?
- Did you figure in cost of living?
- Do you have a plan B?
People know all of these concerns will occur, yet will not plan or take any action to soften the blow until reality hits. Again, it comes down to educating yourself about your money, living within your means, saving smart and planning accordingly for a comfortable retirement.
Due to the average retirement savings age being hit by so many factors, and everyday issues that need to be addressed, it is understandable why financial education and taking positive action on retirement planning is put on the back burner. I myself while in my twenties, was told by my mother to open an IRA for myself, yet I kept putting it off. Then of course comes all the life realities, marriage, buying a home, kids, cars, expenses, job losses, family issues. By the time I was in my middle forties, it hit me! I am getting closer to the other side of 50, now what do I do? So I started making changes.
What you definitely need to ask yourself is:
- Where are you in life?
- Are you planning and preparing for your later years?
- Are you saving for your retirement years?
- Will you have to work in your retirement?
- Are you educating yourself?
- Do you have all your ducks in a row?
- Don’t you deserve a quality lifestyle?
- I highly recommend you:
- Take a hard look at your finances,
- Create a realistic plan for your future
- Take advantage of programs that your employer offers,
- Discuss housing options
- Figuring out the maze of social security and Medicare
- Discover what jobs are available in the workforce for older individuals.
- Invest in and totally rely on a respectable retirement calculator
Although planning and working on retirement plans should be started in your early twenties and adjusted continuously throughout ones life time, a large majority of Americans today no longer have defined pension plans at their place of employment, as 401K, 403B, IRA plans have made a partial replacement. The Expert Software Systems Retirement Calculator is a must have, first-of-its-kind software tool that provides a detailed but easy processes for determining your optimal age for retirement, and also for evaluating how long your retirement funds will last.
With such a huge swing in the economy and a very uncertain years to come it has become increasingly difficult for people to gauge how much money they will need for retirement. This is why the Retirement Calculator is an excellent source of vital information, should be used to its fullest extent and could be your next best friend.
Going forward, just remember a few things concerning your future…
- Planning and moving into retirement is a HUGE change and affects each one differently.
- Breaking down the retirement process and successfully transitioning into a new phase can be a more easier ride when knowing you already have areas mapped out.
- Realize that there is a difference between creating and enjoying retirement income and accumulating wealth.
- Understand that you can improve your financial situation, there is always something you can do to change your daily living and your future, finding that something is what you need to work on now.
- Never stop learning, it keeps the brain smart!