People spend a lot of time talking about how to save for retirement. We analyze the options. We argue about the methods. We discuss the “how to’s” so often that it should go without saying that it is important to save for retirement right?
Well, maybe not. If actions speak louder than words, the fact that the Employee Benefit Research Institute supports more than half of American workers have saved less than $25,000 for retirement virtually screams that we don’t make retirement savings a priority.
Most workers don’t even bother to find out what their retirement needs to be. The truth is if you ever want to retire you have to make it happen. And I don’t care how old you are. No one else is going to support you. There is no retirement fairy waiting to leave $3 million under your pillow when you turn 65.
You have to do the planning. You have to do the saving. What does your retirement look like now? The average current retiree income is just under $30,000. Social security makes up 33.7% of that and Pensiones contribute 21.8%. Given that most Americans believe Social Security will be long gone before they can retire, and pensions are fading from the retirement landscape, it is clear that you the individual will be irresponsible for making up the difference.
The research shows that we are not prepared to do that. Nearly half of the people nearing retirement ages 56 to 62 are at-risk of running short of money to cover basic expenses once they retire. Numbers for younger generations are only slightly better. That means we won’t be choosing between a European vacation or an Alaskan cruise. We will be choosing between paying doctor bills or electric bills.
Take charge! The only way to have enough money to maintain your lifestyle and pay your bills in retirement is to have a plan. Save and invest.
Get a Goal.
Find out how much you’ll need to save to retire. You’ll be able to measure your progress as you get closer to your goal.
Learn about mutual funds, 401(k)s and Roth IRAs and how they help your savings grow.
If you’re in debt get out. Then save up an emergency fund. Then you’ll be able to use your income to build wealth for retirement.
I have been fortunate that my parents were in that low percentage of Baby Boomers that were excellent at planning and saving for their retirement. They taught me to save at a young age, and I’m doing great so far. Need advice? No one to help you with that? We have a solution and a strong support team to help with that.
For more information about how to get a retirement savings plan in place as a Baby Boomer, check out Hope For Baby Boomers