Retirement generally refers to the period of time when an individual leaves the workforce on a full-time basis; historically, that’s been when we reach the age of 65. A comfortable retirement was the goal for which people worked and saved.
Today, roughly 10,000 baby boomers enter retirement every day and will continue to do so until 2029. Because of our improved standard of living, we are living longer and longer.
In 1916, the average lifespan for an American male was just 49.6 years, while women could expect to live until they reached 54.3 years. One hundred years later, the average life expectancy in the U.S. is 76.4 years for males and 81.2 years for females. Many will live much longer. In fact, for those retiring at 65, it’s quite possible that they’ll spend roughly 35% of their lives in retirement.
Saving for retirement is not just about putting money in the bank. It’s about replacing your main source of income when you retire with another source of income. To retire comfortably, it’s important to set goals.
Retirement income comes from three different sources: Social Security, pension plans, and investments. The average retired worker in the U.S. will receive approximately $16,092 per year, or $1,341 per month, from Social Security. On top of that, only 50% of the U.S. workforce is covered by a work sponsored pension plan.
Since Social Security cannot fully replace retirement income, it’s imperative to adopt a diversified investment strategy that includes 401(k)s, stocks, bonds, mutual funds, real estate, and more. That said, it isn’t easy to create a viable retirement investment plan, especially in a low-interest-rate environment. Artificially low interest rates have essentially removed the word “income” from income investing.
While interest rates have been near record-lows, inflation can still have a powerful impact over the course of your retirement. For example, if the inflation rate is two percent, in 25 years, you would need more than $82,000 to purchase something that costs $50,000 today.
There is no easy way to retire comfortably. But there are a number of investment options that can help those nearing retirement increase their income and reduce their risk.
Study: 91% of Millennials Don’t Have a Retirement Plan Retirement savings might not have become a priority for most Millennials. But this generation, born between 1982 and the early 2000s (depending on who you ask), do want to retire a.
Millennials Kicking Butt on Retirement Savings Millennials have a reputation for being entitled, but Generation Y is doing one thing better than baby boomers: retirement savings. The average Millennial with access to a defined contribution plan began saving in a.
Social Security Checks Are Being Reduced for Unpaid Student Debt Social Security checks don’t pay that much. And if you have unpaid student loans, your Social Security checks could be further reduced. According to a new report from the Government.
Collecting $253,088 a Month in Retirement? Planning for retirement is not easy. But if you are one of the top 100 CEOs in the U.S., you can look forward to monthly retirement checks of over $250,000.00! Yes, that’s monthly. Last.
New Bill Could Cut Social Security Benefits President-elect Donald Trump promised not to cut social security benefits, but Republicans may have other plans. On Thursday, Congressman Sam Johnson released a bill to reform Social Security. In order to close the.
One-Third of Older Americans Couldn’t Pay a $500.00 Medical Bill Health care is expensive in the United States. According to a recent survey, more than 70% of Americans nearing retirement say that they are “terrified” of what health care costs.
Trump Retirement Policies in Review Donald Trump barely mentioned America’s retirement crisis during his presidential campaign, but new Trump retirement policies could bring about sweeping changes. Granted, the President-elect has yet to table any specific proposals but, throughout the election.
Retirement Do’s and Don’ts After decades of hard work, retirement should finally give you some time to stop and smell the roses. But note that by not working, your paychecks stop as well. That’s why retirement planning is so important..
How to Start Early Retirement Planning No matter if you are just starting your career or have been working the same job for 10 years, retirement is something you have likely thought about. However, for many, a fulfilling retirement may.
Best Places to Retire in the U.S. 2017 Planning for retirement requires making some important decisions. For instance, you have to decide when the right time to retire is and what the best stocks are for a retirement portfolio. And.