It’s a fact that many Americans aren’t saving enough for retirement with 69% only having 10% or less of their income saved.1 Reasons? They’re clouded by many misconceptions that leads them to ignoring the steps needed to secure their retirements.
- You’ll spend less in retirement. Many people envision themselves doing a whole lot of nothing once they leave the workforce. The truth is you’ll most likely spend more. For instance, many retirees tend to splurge by taking frequent trips and additionally, spend a lot more on medical expenses.
- Living off Social Security benefits are enough. A common guideline is that you should aim to replace 70% of your pre-retirement income. And Social Security is considered the foundation on which you can build a secure retirement as it’s designed to only replace up to 40% of one’s income. With the high costs of living, long-term care, medical care, and more, one should consider seeking out supplemental income such as an annuity.
- After you retire, you can always get a job if you need more money. Sure, you can pick up additional income by finding a job; however, it’ll only get harder as you age. The reasons include the limited number of opportunities due to your physical and mental ability, health issues, and possible age discrimination are all factors.
Retirement planning can be complex. With so much information out there, it can be difficult to separate fact from fiction. Call us today. With our personalized approach, we can help you create a comprehensive financial plan to put you on the path to financial peace of mind.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
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[1] https://www.cnbc.com/2019/03/14/heres-how-many-americans-are-not-saving-any-money-for-emergencies-or-retirement-at-all.html