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.
Important Steps to Build Your Retirement Savings Americans are living longer–much longer. This longevity boom is great news, but it also raises an important dilemma: how much do you need for retirement savings? According to the U.S. Social Security Administration,.
Stashing Dividend Stocks in a Roth IRA We have a lot of retirement saving options nowadays, but arguably none might be better than stashing dividend stocks inside a Roth IRA. Like their 401(k) cousins, Roth IRAs allow your investment gains.
Things to Consider Before Deciding When to Retire Retirement means different things to different people. But no matter what you want to do during your retirement, you have to make a decision on when to retire. Here are a few.
Monthly Dividend Stocks for Big Yields If you’re looking for steady retirement income, then there is one type of investment you need to consider: monthly dividend stocks. I love income investing, but there has always been one issue, namely that.
Estimate for Health Care Expenses Rises 6% from Last Year Health care is expensive. A new study shows that if you retire today, you can expect to spend an average of $130,000 on health care during retirement. Fidelity Investments estimates.
Knowledge of Their Retirement Goals Can Cut Stress New York, NY — You should feel lucky if you’re part of that minority group in the U.S. whose members don’t lose sleep over concerns and negative emotions about their retirement. A.
BAE Systems, Tesco Pay More in Dividends Some of the Britain’s largest listed companies distributed five times more cash in dividend payouts than they spent cutting their pension deficits last year, according to a research report. The research, prepared by.
Northern Europe Best Place to Retire Are you planning to retire where you were born? You might have to think twice. The U.S. ranks 14th for retirement security when judged by the factors that affect the lives of retirees the.
Economic growth was pretty strong over the past 15 years or so, but that doesn’t mean retirees in America are finding more happiness in their golden years. The Employee Benefit Research Institute published a study showing that from 1998 to.
No More Golden Years? According to a recent study by Pew Research, America’s baby boomers aren’t having the peaceful retirement they intended. More Americans above the age of 65 are working than at any other point this century. They are.