Retirement is a time when we can finally relax and enjoy our lives. However, many people are not yet ready to retire. In fact, the number of Americans aged 65 and older who are working or looking for work has increased by more than 20% since 2007!
This trend is likely to continue in the future as the population ages. As a result, it is important that you plan your retirement correctly so that you can enjoy a comfortable life after decades of hard work.
Young People Think They’ll Retire Early … Until They’re Older
According to a recent study by Trusted Insight, the majority of people aged 25 to 34 think they’ll retire by the time they’re 65. However, when these same people reach age 65 and look back on their lives, they find that retirement isn’t as rosy a prospect as they once thought.
In fact, a whopping 82% of respondents say they didn’t have enough money saved for retirement when they were actually retired.
The good news is that most of these people were able to adjust their retirement expectations in time. But if you’re one of the 22% who didn’t adjust, don’t worry – your retirement is still within reach.
Here are some jaw-dropping stats about retirement in America:
– Forty-one percent of all workers will not have enough money saved for a comfortable retirement.
– Half of all retirees report that they did not have enough income to cover their costs during their retirement years.
– Sixty-six percent of retirees say that Social Security was their biggest source of income during their retirement years.
– Only 34% of retirees feel confident that they are able to live comfortably without working after retiring.
Retirement May Be Longer Than Expected
In a recent report by Fidelity Investments, it was found that the average American is only prepared for retirement by about 25%.
This means that many Americans are not only unprepared for retirement, but they may also have to work longer than they expected.
The study found that 43% of Americans think they will retire at age 65 or older, when in reality the average retirement age is closer to 70. Additionally, only 29% of Americans feel confident about their ability to cover all their living expenses in retirement.
This lack of confidence is likely due to the fact that most people do not have a good grasp on how much money they will need in retirement.
To make matters worse, a majority of people (57%) do not have a plan for how they will finance their retirement. This means that many retirees will rely on Social Security benefits or other forms of government assistance to meet their needs.
If Social Security is cut back or eliminated, as has been proposed by some politicians, many retirees could face a difficult time covering their expenses.
If you are worried about your ability to survive in retirement, now is the time to start planning for it. Start by creating a budget and figure out how much
More Americans Are Planning For a Longer Retirement
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According to a report from the Employee Benefit Research Institute (EBRI), more Americans are now planning for a longer retirement. The study found that in 2018, 33 percent of workers surveyed said they expect to retire after age 65, up from 28 percent in 2010.
And while the increase may be due in part to the fact that more baby boomers are reaching retirement age, it’s also indicative of an overall trend – Americans are living longer and expect to retire later in life.
There are a number of reasons why this might be the case. For one, many people are choosing to stay active and engaged into their 70s and 80s, thanks in part to advances in medical technology that have extended lifespans.
And while there’s still plenty of activity and work to be done during retirement, many retirees now enjoy a more leisurely lifestyle – something that wasn’t necessarily the case just a few decades ago.
So if you’re thinking about retiring someday, it’s important to start planning for it today – not only will doing so help ensure a comfortable retirement lifestyle, but it could also help you avoid
Many Americans Are Accessing Retirement Funds Early
The truth is that many Americans are accessing retirement funds early. According to a report by the Employee Benefit Research Institute, more than 30 percent of workers in their 20s and 30s have already started to take advantage of employer-sponsored retirement plans.
This number is even higher for those who are married, with nearly 40 percent of married workers participating in an employer-sponsored retirement plan before they reach age 50.
The good news is that there are plenty of ways to make sure you don’t end up in this situation. For starters, make sure you are contributing enough to your retirement account.
The National Institute on Retirement Security recommends that you contribute at least 10 percent of your income each year, but if you can afford it, contribute more. Additionally, make sure you have a solid understanding of your retirement options and how each one will impact your savings. If you find that your income is likely to decrease in the future, consider saving more into a 401(k) or Individual Retirement Account ( IRA ).
Finally, don’t forget about estate planning – making sure you have a will and properly planning for the distribution of your assets can help ensure that you have enough money available when you retire.