Retirement dreams come in all shapes and sizes, however, there are a few “staples” in this dreamland that most of us want to be a reality when it comes time to set down the briefcase for good. Most people will envision a beach house, days on the golf course, increased quality time with family, and lots of travel! While it’s understandable why such things are desired, the reality is that this kind of life style during retirement will most likely require a level of savings many Americans just don’t have.
A recent report from GOBankingRates included a poll from September which included over 1,000 participants. The majority of that number said they would like to save between $100,000 and $250,00 for retirement. While having a clear goal is better than not thinking about retirement savings at all, in reality a $100,000 savings might not last that long for a retirement that could potentially last for two decades. Especially if the vacation home and world traveling kind of dreams are involved.
Another reality check, is that in a separate GOBankingRates survey, more than half of the American participants reported having less than $1,000 in their savings accounts. While some of that figure can be explained by the participation of Millennials, who may be at the start of their savings endeavors, we do see individuals closer to retirement approaching the Golden Years underprepared as well. A report by the Stanford Center on Longevity found that nearly one-third of Baby Boomers has no money saved in retirement plans as recently as 2014. Those with retirement funds had the median savings of around $200,000 when experts say a 30-year retirement is now projected to call for a nest egg of at least $1 million*.
For most Americans, it seems there’s been a serious lack of proper investment strategies and savings planning. Some have simply been guessing at the amount of money they will need in retirement instead of seeking professional advice or researching what studies are reporting. Many Baby Boomers are not taking full advantage of the resources available to potentially help them achieve a secure and dignified retirement. Rethinking your retirement by developing a holistic financial plan can help restore your confidence and build savings for those post-working years. Be sure to work with your financial professional on a retirement strategy which focuses on holistic strategies, and considers retirement risks such as longevity, health care, long-term care, and lifestyle expectations, to help ensure that your financial resources will provide income and security for your lifetime.
Contact Simplicity Life today to get additional information on other retirement options for your clients 800.921.3100.