6 Ways You Can Mitigate the Impact.
Are your retirement savings and investments on track? The majority of Americans are falling short of what they will need for a comfortable and secure retirement. This is a crisis impacting retirees,
those about to retire and even individuals still planning for their retirement.
In fact, according to a recent survey, the Insured Retirement Institute, only a quarter of Baby Boomers say they feel confident they will have enough money in retirement. A survey commissioned AARP and the Association of Young Americans adds that about half of respondents believe they don’t have enough money for a comfortable retirement. So what kinds of numbers are we talking about? According to a PWC survey more than a third of Boomers have saved less& than $50,000. And just 15% have more than $500,000 saved.
What You Can Do to Mitigate the Retirement Crisis
Given the incredible power of compounding, it’s never too early to begin saving for retirement. At the same time, for those who are at an age when they see retirement inching closer, it’s never too late to start saving and/or investing for retirement.
And a good place to start is to sit with a qualified financial planner and investment advisor who can help you set up a financial plan. In a recent survey, 79% of Baby Boomers who work with an advisor report that they have put aside at least $100,000. Of those not working with an advisor, less than half have saved $100,000. As you begin planning, you may have heard about the 4% Rule. This is a rule of thumb for estimating how much of your retirement portfolio you can afford to withdraw annually. Because the 4% Rule was developed in the 1990s—before interest rates dropped to almost zero—it may be harder to make this principle work today.
Again, a qualified financial professional can help you develop a plan that factors in longevity, inflation, healthcare needs, interest rate projections and more.
For the complete article, please fill in the form below: