Retirement Is Coming Sooner Than You Think
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by: BarryWaxller
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If the current real estate market doesn't scare you, the current status of your retirement planning probably should. Are you ready for your golden years or at least on the path to being so? These stats and tidbits of advice might change your mind.
If your employer offers a tax-sheltered savings plan, such as a 401(k), sign up and contribute all you can. Your taxes will be lower, your company may kick in more, and automatic deductions make it easy.
Experts estimate that you'll need about 70 percent of your pre-retirement income - lower earners, 90 percent or more - to maintain your standard of living when you stop working. Take charge of your financial future.
Remember to review your Social Security Statement each year for accuracy. This is your fallback retirement position, so make sure it is correct.
Today, only 42 percent of Americans have calculated how much they need to save for retirement. Have you?
The average American spends 18 years in retirement. Yes, your money has to hold out that long.
You can start your Social Security retirement benefits as early as age 62, but the benefit amount you receive will be less than your full retirement benefit amount.
Take inflation into account. A mere 3 percent gain each year can mean you will need nearly twice your salary at 40 to live comfortably at 80.
Earnings compound over time, so start investing as soon as humanely possible. This is true even if the amount you are saving is small.
For the average worker Social Security replaces only about 40% of pre-retirement income, the balance must come from pensions and savings and investments.
Your social security statement should come to you each year around your birthday. If it does not, contact the agency to update your address.
If your employer offers 401k plans, try to maximize your contribution. This is particularly true if they match your contributions in any way.
Retire to a warm, dry location. Areas such as Las Vegas tend to have fewer pollens and pollutants in the air, which is good for your health. Good health equals lower medical bills.
Predicting health is never easy, but it is vital to know that the government will liquidate certain of your assets to pay for medical bills it incurs in caring for you. Make sure you understand this and pay for it.
Some 51% of Americans age 55 and older have saved less than $100,000. Some 28% have saved $250,000 or more.
When is it too late to start saving for retirement? It never is. People starting at 50 can still save a lot of money.
For most people, retirement is their biggest financial worry. The key to limiting this concern is to save every penny you can today. Time will make all the difference in your returns, so make sure you save, save, save!
About the Author
Barry Waxler is a financial advisor with UFCAmerica.com.
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