Are You Saving Enough for Retirement?

More than half of Americans participating in a recent survey* said they are behind schedule when it comes to planning and saving for retirement.

Many survey respondents – including 40% of those age 45-54 and 36% of those age 55 and up – reported having less than $25,000 of savings and investments, not counting the value of their primary residence. Only 12% reported savings and investments of $250,000 or more.

Are you on track with your planning and saving? Before you decide, consider some of the reasons you could need more money for retirement than you now anticipate.

You may have to retire earlier than planned

Many people do. Health, family, and work-related issues often lead to early retirement.

You may not want to sell your home

Census data reveal that most homeowners age 65 and over remain in their pre-retirement homes after they retire. So, planning to “cash in” on your home’s value may not be realistic. While a reverse mortgage is one way to tap into home equity without selling the home, it’s a strategy that carries a certain degree of risk.

You may have to spend a lot on health care

Many companies are cutting back on health coverage for retirees and Medicare doesn’t pay for everything. Even if you buy supplemental health insurance, the premiums plus your out-of-pocket costs could add up to a considerable amount.

Your retirement could last a long time

The average 65-year-old has a life expectancy of 18.1 years. For a 65-year-old couple, there is a 39% chance that at least one of them will survive to age 90.

Plan now

You can’t know for sure how your retirement will play out. But it certainly makes sense to do what you can now to plan and save for your future retirement. Please call for an appointment if you’d like to discuss your financial situation. I can help with a tangible plan – one that can be adjusted as your life and needs change. No matter where you’re starting from, I’m here to give you the guidance you need to reach financial security.