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.
Types of Employer-Sponsored Retirement Plans One important factor that many employees forgot to ask their employers about is the company’s retirement plan. After all, for most, retirement still far in the future, so there is no sense of urgency to.
How Rising Interest Rates Impact You The U.S. economy is rockin’ and rollin’, but rising interest rates could shut the party down. We have spending soaring, sales at record highs, and unemployment dropping though the floor. Inflation, though, has crept.
Top Places to Retire in Florida Choosing where to retire is one of the most important decisions you’ll make. Shifting from the workforce to being a retiree is a life-altering process that will largely dictate how those next decades of.
How Do Social Security Benefits and Supplemental Security Income Differ? Social securities benefit programs are for individuals who have worked long enough and paid their social security taxes. Payments are made to recipients due to their disability, dependents, survivor benefits,.
Nominee Wants to Cut Social Security President Donald Trump promised not to cut social security on the campaign trail, but his latest nomination suggests he may reconsider. On Tuesday, Trump’s nomination for budget director, Mick Mulvaney (R), defended cuts to.
Are Millennials Really Spending More On Coffee Than Retirement? Kids today, with their darn fancy coffee drinks, just can’t seem to save for retirement. At least, that’s the newest information coming from a survey conducted by SurveyMonkey, which found that.
You could be hit by a tax hike. Backers say it will save Social Security from financial collapse. Taxpayers can call it a cash grab. Regardless, people will have to fork over more cash for an increasingly lousy retirement plan..
400,000 American Retirees Are Now Living Abroad Retirement is not cheap in the U.S., which is probably why more American retirees choose to stretch their dollar abroad. According to the Social Security Administration, there are just under 400,000 Americans retiring.
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.