A recent Merrill Lynch Finances in Retirement survey found that the average cost of retirement for a U.S. worker, as of March 2017, was a staggering $738,400. Another survey by Fidelity estimates that a couple who retired at 65 have, on average, $260,000 of health care costs during retirement.
As a Country, We’re Way Short of the Expert Recommendation
According to the National Institute of Retirement Security, our nation’s workers are trillions of dollars short of where they should be in terms of retirement savings. Combined, they estimate the country is $6.8 to $14 trillion short of where we should be.
Are You One of the Minority of People Who Are Set?
When you average the nation’s 50-year-olds’ savings for retirement it only equates to about $60,000 per person. Keep in mind that’s throwing together people who have nothing and those who have lots of savings. Considering how many people probably have millions of dollars in retirement savings by that age, it’s safe to assume there are a lot of 50-year-olds out there with $0 in retirement savings.
Are You Planning on Retirement?
Bankrate.com ran a survey that found 75% of today’s workers plan to work during retirement. Although 38% of the people surveyed said they wanted to work because they like staying occupied and busy, 62% believed they would need to work due to lack of adequate retirement savings.
Student Loan Debt Is Kryptonite to Retirement Savings
The financial research and consulting firm LIMRA’s Secure Retirement Institute created a report on the effects student loan debt has on the retirement savings behaviors of millennials. They ultimately determined that recent grads who enter the workforce with $30,000 in student loan debt may accrue up to $325,000 less by the time they retire than a recent grad with no debt.
Don’t necessarily let that stop you from earning a degree. If your education gives you significantly more earning power you can likely more than makeup for the slower start thanks to significantly more lifetime income.
Do You Have a 401(k)? Are You Maximizing Your Employer’s Matching Contributions?
Approximately 25% of the nation’s workers with access to an employer-administered 401(k) aren’t taking advantage of employer match contributions. When you add up the potential employer contributions of workers who have these opportunities but don’t take advantage of them it equates to about $24 billion in lost earnings for the nation’s workers.
Save Wisely for a Relaxing Retirement!
If retirement is something you look forward to, start preparing for it today. If you’d like to find additional resources on managing students loans, debt or your retirement savings, make sure to visit American Financial Solutions’ website, www.americanfinancialsolutions.org, for additional resources!