According to a study that was recently released by the Center for Retirement Research at Boston College, nearly one-third of baby boomers ages 51 to 61 are at risk of not having enough in savings to finance a comfortable retirement. At least 32 percent of all retirees appear to be "at risk" for not being able to maintain their pre-retirement standard of living in retirement.
There is a retirement crisis because people are living longer, health care costs are escalating and workers aren't saving enough. Americans now must wait until they're older than 65 to collect full Social Security benefits; meanwhile, lower interest rates mean they'll probably collect less on annuities and other investments. And many of today's workers do not have pensions like earlier generations and must rely on worker-funded retirement accounts.
Many baby boomers are faced with two choices — to save more or to work longer. For older people, working just two years more can make a substantial difference. Working longer can have a powerful effect because it shortens the period over which you have to support yourself and lets you put off dipping into your retirement reserves and you can collect higher Social Security benefits.
How much do you need to retire?
Some financial planners consider a 70% rule of thumb meaning that you will need 70% of the income you are receiving pre-retirement to carry you through after you retire. As an example if you now earn $50,000 per year while working you will need at least $35,000 per year after you retire.
The average monthly Social Security benefit payment is about $990.00 per month ($11,880 per year) according to the Social Security Administration. http://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/#table2 Using their figures you would need to have an additional income of $23,120 to reach the goal of the 70% rule.
The average monthly Social Security benefit payment is about $990.00 per month ($11,880 per year) according to the Social Security Administration. http://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/#table2 Using their figures you would need to have an additional income of $23,120 to reach the goal of the 70% rule.
Where will you get that needed additional income?
One of the top reasons that older Americans are working longer is due to the cost of health care. Even though you’ll be eligible for Medicare, it doesn’t cover all health costs and the rapid rise in health care costs is one of the leading causes of bankruptcy filings among Americans over the age of 55.
Will your 401k furnish the needed funds?
Will your 401k furnish the needed funds?
Current changes in the economy, higher gas, food, utilities, health care costs combined with tighter credit policies, unstable stock market and plummeting real estate values are having a definite impact on how and when you can retire.
Where will you work to support your cost of living?
A high percentage of baby boomers are finding that they must work to sustain their lifestyle but where do you go when your company doesn’t want you anymore? Many older Americans who continue to work after they retire choose to work for themselves. Some people are able to turn previously acquired job skills into extra money. Others monetize their hobbies and passions on eBay and are able to earn a full time salary.
A high percentage of baby boomers are finding that they must work to sustain their lifestyle but where do you go when your company doesn’t want you anymore? Many older Americans who continue to work after they retire choose to work for themselves. Some people are able to turn previously acquired job skills into extra money. Others monetize their hobbies and passions on eBay and are able to earn a full time salary.
The more adventurous reach the boundaries of eBay and delve more deeply into the arena of Internet marketing. Unfortunately many of them fail. Statistics show that an alarming 95-97% of those who start a business fail within the first year; many don’t even last 6 months.
The biggest reason they fail is from lack of knowledge.
The biggest reason they fail is from lack of knowledge.
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RH Sterling – Case Statement Copywriter – 570.970.1245 – Skype: rhsterling
